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Updated over 4 years ago on . Most recent reply

User Stats

46
Posts
34
Votes
Allen B.
  • Investor
  • Chicago area
34
Votes |
46
Posts

How to figure net worth for lender?

Allen B.
  • Investor
  • Chicago area
Posted

For at least some types of commercial lending, loan balance is capped at the net worth of the buyer(s). I've looked but so far, not been able to find guidelines for how that is calculated. In particular, would a primary residence be included?

Seems like Fannie & Freddie ought to have painfully detailed specifics somewhere, but I haven't found them yet. Trying to rule out as many painful surprises as I can, in advance.

Thanks,
Allen

Most Popular Reply

User Stats

497
Posts
614
Votes
Charles Seaman
  • Apartment Syndicator
  • Charlotte, NC
614
Votes |
497
Posts
Charles Seaman
  • Apartment Syndicator
  • Charlotte, NC
Replied

@Allen B.  There's really only one way to calculate somebody's net worth.  You add up all of their assets, subtract their liabilities from them, and the difference is the person's net worth.  A primary residence, along with any secondary or vacation residences, would be included, as would any other assets or liabilities associated with that person.

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