How it works
For an initial period, the monthly payment covers interest only. The balance does not fall during that period unless you choose to pay principal. When the period ends, the loan amortizes: each payment then includes principal and interest over the remaining term, and the payment increases.
We say that at the outset because it is the part that matters most. The length of the interest-only period, the full term and the payment before and after are set for each file and disclosed to you in writing with your terms.
Whom it suits
Borrowers whose income arrives unevenly or in large sums, such as founders, partners and professionals paid on distributions; borrowers who prefer to reduce principal on their own schedule, for example after a liquidity event; and investors managing the cash flow of a rental.
It is not for everyone. The balance does not decline on its own during the interest-only period, and the later payment is higher. If you want the balance to fall steadily from the first payment, a fully amortizing structure may suit you better, and Mayer will say so.
Where it applies
On every program: the Founder Loan (bank statements), the Operator Loan (1099s), the AR Loan (assets) and the IL Loan (investment property).
Where Mbanc lends
Primary residences and second homes in 22 states: Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Maryland, Michigan, Nevada, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia and Washington. Investment property in those 22, in Alabama, Alaska, Arkansas, Delaware, Hawaii, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, Montana, Nebraska, New Hampshire, New Mexico, New York, Oklahoma, Rhode Island, Vermont, West Virginia, Wisconsin, Wyoming, and in the District of Columbia: 46 states and D.C. in all.
How it begins
- 1
A conversation
Fifteen minutes on Mayer's direct line. No application and no credit pull. You describe how you earn and what you are buying; he tells you whether the program fits.
- 2
What your file would take
If it fits, you receive a short list of exactly what your file needs, and nothing more. If it does not, you hear that on the same call.
- 3
Terms, in writing
Once the documents are in, the terms are presented in writing, including the full structure of the loan, before anything is signed.
