Every loan has the potential to be a little different, with a broad range of types, constraints, and parameters. These granular details matter but can be difficult to track and use effectively with simpler modeling methods and make software feature sets complicated to deliver. When our product team scoped our financing engine, we came up with over seven methods that lenders use to model a Use of Funds.
Assess is equipped with a versatile financing interface that gives you control in inputting your loans parameters and specifying how it will be used, or its “Uses of Funds.” Will the loan be used to fund any shortfalls in the property’s cash flows? Financing fees? Assess makes it simple under a broad range of scenarios and uses the most conservative Use of Funds sizing approach, from a bank’s perspective.
Uses of Funds are critical because they correlate directly with the size of a loan’s total principal. For instance, if a lender is sizing a loan using the Loan to Cost (LTC) method, selecting more use categories might increase total costs, which in turn increases the required principal amount.
In Assess, you can set Uses of Funds in the Financing section with a series of toggle switches and specify how long you want the loan to fund these uses in the Duration field.
These flexible financing options let you easily input a wide array of loans that cover various project scenarios in a intuitive way.
Come see this feature in action at www.assessre.com. We’re excited for you to take a look and to hear your feedback. Sign up for our newsletter to stay up-to-date with our latest feature developments.