The Incredible Lender
Gold Bank Statement "FORE" Self-Employed Investors Loan
This Investor Only Loan Program is not for Owner Occupied buyers
What a Bank Statement FORE Self-Employed Investors Loan?
This Bank Statement Loan is ONLY for investors (not for owner occupied properties) and ONLY for Self Employed Borrowers.
Incredible Lender Gold FORE Loan: Pre Payment-Penalty Options (for a lower interest rate)
In many cases, it is possible to get a lower interest rate if the investor chooses to have a pre-payment penalty added to the loan agreement. The investor will lower the interest rate knowing that they will have a guaranteed rate of return on the money they lend for a set number of years.
The Incredible Lender Gold DSCR has pre-payment penalty choices of no prepayment penalty and up to a 5 year pre-payment penalty (0, 1, 2, 3, 4, & 5)
Incredible Lender Gold FORE Loan: Limitations on Pre-Payment Penalty Options
Some states do not allow a pre-payment penalty like KS, MI, MN, NM, OH & RI. Other states may limit the length of a pre-payment penalty (2 years in MS, 3 years in DC, ID, IA, LA & MD).
Incredble Lender Gold FORE Loan: Terms of the pre-payment penalty
The prepayment charge will be equal to 6 months of interest on the amount of the prepayment that exceeds 20% of the original principal balance. The charge applies to loans that pay off due to sale or refinance, or reducing the origional loan amount by more than 20% in a 12-month time period.
5 Year Pre-Payment Penalty Option
Example:
$1,000,000 Loan @ 8% Interest Rate (6 months of interest = $40,000)
Pre-payment penalty was never triggered because the borrower never paid more the 20% of the loan in a 12 month period.
Years of Prepayment Penalty | Loan Principal Payments (No more than 20% of loan amount) |
Loan Balance |
Year 1 | $200,000 | $800,000 |
Year 2 | $200,000 | $600,000 |
Year 3 | $200,000 | $400,000 |
Year 4 | $200,000 | $200,000 |
Year 5 | $200,000 | $0 |
Years 6 to 30 | (5 year pre-payment penalty over) | Loan Paid Off |
Updated 2024-2-2 (Incredible Lender Gold FORE Guidelines)