Underwriting Process: According to Anne Albani-Dolson, National Sales Director, VFC lends primarily “based on the credit profile of the client and the marketability of the property.” VFC uses five “keys” to classify borrower risk. VFC says, “Once we determine the credit behaviors of the client we assign a Key, which determines the rate.”
Mortgage Types: Purchases and refinances of owner-occupied or rental properties. VFC also offers BFS stated income mortgages.
Minimum Credit Score: VFC says it “does not use Beacon scores when decisioning a deal.”
Interest Rates: VFC’s rates seem reasonable for the higher risk they are taking and currently range from 6% on up. The actual rate depends on which “Key” the borrowers falls into, the term, and the LTV.
Fees: Instead of mortgage insurance, VFC offsets risk with a 1% to 3.5% Administration fee which is capitalized into the mortgage.
Max. Debt Ratios: VFC Home says it does not use GDS, only TDS ratios.
Lending Areas: Ontario and BC for now. Other provinces will likely be added later.
Features Common to All VFC Home Mortgages:
Payment frequencies: Monthly, semi-monthly, bi-weekly and weekly
Prepayments: 10% lump-sum prepayments annually plus a 10% payment increase allowance
Rate Holds: 60 days
VFC Home Inc.’s website will be ready in a couple of weeks according to the company. In the meantime, VFC Home is currently available for broker submissions through Filogix Expert. Agents can call 1-800-832-3321 for more information.