Turnrow

Answers · No-Doc & Qualifying

How is this different from the stated-income loans of 2008?

Stated-income loans let borrowers invent income to qualify for owner-occupied homes at 95–100% financing. This is the opposite structure: no income is claimed at all, the property is business-purpose collateral, and leverage is capped at 70% LTV of independently appraised value.

The 2008 product failed because it kept income at the center of underwriting while removing verification — borrowers stated fictional salaries, and lenders sized loans to those fictions at near-total leverage on homes people lived in. When values dipped even slightly, there was no equity cushion and no truthful basis for the loan.

Modern asset-based lending removes income from the equation rather than pretending about it. Nothing is stated, so nothing can be misstated. The loan is sized to what a licensed appraiser says the land is worth, with the borrower holding at least 30% real equity. On purchases the LTV runs off the lesser of price or appraisal, so an inflated contract cannot inflate the loan.

The regulatory line matters too. Dodd-Frank effectively ended stated-income consumer mortgages, and business-purpose lending was deliberately left as a distinct, legitimate category. A non-owner-occupied ag loan at 70% LTV with a 680+ guarantor is structurally what prudent private lending looked like before the excesses — and after them.

The Turnrow angle

Turnrow holds the 70% ceiling and the appraisal requirement on every file, no exceptions — the equity cushion is the underwriting.

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