Lenders deny loan applications due to reasons like poor credit, insufficient collateral, industry and more
Getting denied a small business loan doesn’t mean businesses can’t secure one in the future
Before reapplying for a loan, determine why the previous application was denied and make sure you’re applying with the right lender
Starting or growing a business may require financing, but not all business loan applications are successful.
According to the Federal Reserve’s 2023 Report on Employer Firms, 21 percent of surveyed loan applicants were denied for loans in 2022. That number is expected to go up considering lenders are expected to continue tightening their lending standards for the rest of 2023.
We’ll explore the most common reasons for denial and provide solutions to increase your chances of approval when reapplying for a small business loan.
Too much debt
If your business carries a significant amount of debt, it may hinder your ability to repay a new loan. Lenders view excessive debt as a risk because it can lead to default. And if you default on a business loan, a few things may happen, including the lender seizing business or personal property to recover the borrowed funds.
Your best course of action is to focus on reducing your existing debt load. You can do this by renegotiating terms with creditors, consolidating loans or making additional payments. Also, limit the use of your available credit, which adds to your debt and impacts your ability to build business credit.
Bad credit
A business owner with bad credit is a red flag for lenders. It suggests that you may struggle to manage your finances.
If you have a history of late or missed payments and defaults, consider making a few changes to how you manage your personal and business finances. For example, set up autopay so bills are paid on time and review your credit report to dispute errors and inaccuracies.
You won’t see immediate changes to your score. So if you need funds right away, look into lenders who specialize in business loans for bad credit.
Don’t meet the lender’s eligibility requirements
Failing to meet a lender’s eligibility requirements for a business loan can result in denial. All lenders have specific criteria related to credit scores, annual revenue, time in business and other factors.
It’s important to review the eligibility requirements of potential lenders before applying. If you don’t meet the lender’s criteria, consider alternative lenders. But if you are set on working with a specific lender, focus on improving your business’s financial health so you qualify for a loan.
Not enough collateral
With a secured small business loan, businesses must pledge assets that can be seized if they default on the loan. Since the collateral for a business loan is used as a form of repayment and needs to cover the outstanding balance on the loan, if these assets aren’t of significant value, lenders may deny your loan application.
You can work to build up your business’s assets so you qualify for secured financing options in the future, but if you need funding as soon as possible, explore alternative financing options that don’t require collateral.
Bankrate insight
Online lenders typically offer a variety of unsecured business loans, including business lines of credit and merchant cash advances. Loan amounts will likely be significantly lower than secured business loan amounts. If you don’t have a high credit score and strong business financials, you may see loan amounts of $100,000 or less.
Not enough free capital or cash flow
Lenders want to see that your business has sufficient cash flow to repay the loan. If there’s no evidence of enough free capital or cash flow, they can’t approve you.
Before applying for another small business loan, complete a cash flow analysis to figure out ways to better manage your expenses and free up cash so you can afford the monthly payments. You can also increase your revenue. The required annual revenue varies, but if your business brings in at least $100,000, you could get approved with some online lenders.
You can also explore invoice factoring or merchant cash advances, which are short-term business loans designed to help businesses that need quick access to capital.
Don’t have a business checking account
A business checking account is a valuable tool that can help you manage your business finances more effectively. While it isn’t a requirement to start or run a business, many lenders, including OnDeck, Bank of America and Fundbox won’t approve loan applications for businesses without business checking accounts.
To meet this requirement, simply open a business checking account. If your lender offers a full suite of business banking products and services, consider opening an account to establish a relationship and potentially access discounts.
Industry risk
Some lenders don’t want to risk lending to businesses in certain industries due to the odds of failure or unstable revenue. For example, restaurants and real estate businesses may be disqualified from a small business loan.
Research lenders who are familiar with your industry and the associated risks. Many alternative lenders don’t have the same industry restrictions as traditional lenders, so you could be better off going this route. But they often come at a high price due to interest and fees.
Don’t have a business plan
Not all lenders require a business plan, but the ones that do want to see a clear and detailed outline of how you’ll use the loan, how it will benefit your business and if your business has the potential to earn the revenue necessary to repay the loan.
Creating a well-thought-out business plan that demonstrates your vision, strategy, goals and financial potential can get you closer to loan approval. A few things to include are:
Executive summary
Company description
Summary of market research
Financial plan
Why was my SBA loan denied?
Compared to traditional small business loans, SBA loans offer extended terms and reduced interest rates, with average SBA interest rates falling between 10.75 percent and 16.50 percent.
In 2022, SBA approvals for 7(a) loans were under 50,000 and only about 9,000 for 504 loans. That’s according to data from the SBA Weekly Lending Report. When an SBA loan is denied, it could be for similar reasons as traditional loans, but the SBA has additional criteria that businesses may fall short of meeting.
Common reasons for SBA loan application denial include:
Poor personal or business credit scores
Insufficient collateral
Insufficient cash flow
High existing debt
Ineligible business, size or industry
Missing documents or information
Bankrate insight
If your SBA loan is denied, you’ll need to wait 90 days before reapplying. During that time, check with your lender to see why your SBA loan was denied and make changes or consider applying for a different type of SBA loan.
What to do if your business loan is denied
If your small business loan is denied, this doesn’t mean you won’t get the funding you need. You can reapply for a loan, but there are a few things you’ll want to take care of first.
Start by identifying the reason for the denial. Whether it’s due to poor credit history, insufficient cash flow or another issue, this insight is what you need to get your future loan application approved.
Depending on the reason, for example, if you don’t have a business checking account or business plan, you can be ready to reapply in a few days or weeks. But if your business’s poor financial health is to blame, making improvements may take some time but can lead to a more affordable business loan. But if you can’t wait, consider looking into a different lender that is willing to work with you.
Before you reapply for a small business loan, work to boost your creditworthiness by making timely payments and reducing existing debt. And don’t be afraid to explore alternative lenders and government-backed programs with flexible lending criteria.
Bottom line
Poor credit, insufficient cash flow, lack of a business plan and other issues can prevent you from securing a small business loan. It can be disappointing when you get denied funding, but it’s important to understand why because it’s an opportunity to create a plan and implement solutions to significantly improve your business’s financial health. And, by the time you’re ready to reapply, you’ll seem less risky to lenders and have better odds of approval.
Frequently asked questions
Credit score requirements vary by lender, but you can secure a business loan with a score as low as 500.
Yes, it is possible to get a business loan with no money. Certain business loans, such as SBA microloans, equipment loans and business credit cards, are designed for new businesses with no revenue. But waiting to secure financing might be the better option since some business loans may not come with favorable rates and terms for businesses with no revenue.
Getting a small business loan can be challenging, but it depends on the loan type, lender, their requirements and your qualifications, including credit score and annual revenue. Start by getting your personal and business credit scores and reviewing your credit report. Then look at lenders and their eligibility requirements to see which ones will work with you.
Mortgage rates fell to an all-time low on Thursday, according to the daily average tracked by Optimal Blue. The direction of interest rates this week will have a lot to do with what Federal Reserve Chairman Jerome Powell says at the end of the central bank’s policymaking meeting on Wednesday.
Powell is the man who has the most power over mortgage rates at the moment. In mid-March, he restarted a bond-buying program last used during the financial crisis to stimulate demand for Treasuries and mortgage-backed securities. The primary goal was to grease the wheels of markets locked up with investor fears about the economic fallout of the coronavirus. It also resulted in cheaper rates.
“The Fed has been dominating mortgage rates since the middle of March and what they do on Wednesday is going to be a continuation of that,” said Walt Schmidt, FTN Financial’s head of mortgage strategy. “I don’t think it’s possible to contemplate we’d be anywhere near this low in mortgage rates if it weren’t for the Fed.”
The likely scenario for Wednesday is the Fed will provide forward guidance that either reiterates its pledge to buy MBS “for as long as it takes,” or becomes even more accommodating as a new surge in COVID-19 infections slams the economy, Schmidt said.
Rates have tumbled almost a percentage point since the Fed began buying Treasuries and MBS in mid-March. The initial pledge made on March 15 to buy $500 billion in Treasury bills and $200 billion of mortgage-backed securities wasn’t enough to unfreeze the markets. The daily average mortgage rate hit a two-month high of 3.84% on March 19, as measured by Optimal Blue.
It’s what happened the following Monday that did the trick: In an announcement posted on the Fed’s website at 8 a.m., before the opening of U.S. stock markets, Powell said the central bank would make “unlimited” purchases of MBS – that’s when rates began falling.
In June, the Fed pledged to keep buying Treasuries and MBS to the tune of about $120 billion a month.
There are other factors in play, including the question of whether the Senate will act to extend the beefed-up unemployment benefits set to expire on Friday. The extra $600 has helped to keep jobless Americans current on their bills, including mortgage payments.
If forbearances or delinquencies begin to rise, it will exert upward pressure on mortgage rates as lenders add a “risk premium” that will counteract the Fed’s bond-buying efforts.
“The Senate is not expected to send its version to the House of Representatives until next week,” Diane Swonk, chief economist of Grant Thorton, said in a note to clients on Monday. “Some worry that Congress will not come up with a plan before the recess scheduled for Aug. 7. This is the rare time when I actually hope election-year politics and Congressional propensity to spend dominate the agenda.”
The House passed the Heroes Act in May that extended the unemployment benefits through January, increased funds for testing, and supplied monetary relief to states and communities hard-hit by expenses related to battling the pandemic. The Senate went on a two-week vacation before the July 4 holiday without debating it or negotiating its own COVID-19 relief legislation.
Better — which went public after merging with special purpose acquisition company (SPAC) Aurora Acquisition Corp. on Thursday — funded a loan volume of $1.7 billion across 4,768 loans in the first six months of 2023. In Q2, Better’s origination volume was $900 million across 2,421 loans, compared to production of $800 million across 2,347 loans funded in Q1.
Of the $1.7 billion in production volume in the first half of 2023, refis accounted for $131 million and purchase loans consisted of $1.6 billion. Better’s funded loan volume of $1.7 billion in the first half of 2023 declined from $9.7 billion during the same period in 2022.
The lender’s gain-on-sale margin increased to 2.34% for the six months ended June 30, 2023, from 0.99% for the six months ended June 30, 2022. The jump in gain-on-sale margin resulted from “market volatility which positively impacted our mortgage platform revenue,” its 8-K filing states.
Better’s total market share of 0.2% during the six months of 2023 declined from 0.7% in the same period in 2022.
“The mortgage market remains competitive among lenders, given the interest rate environment and we continue to focus on originating the most profitable business available to us. As a result, we have pulled back on our most unprofitable channels, resulting in further declines to market share,” according to its filing.
In Q2, Better decided to wind down its in-house real estate agent business to focus on partnering with third-party real estate agents. The pivot was aimed at providing customers with real estate agent services, a business model that better aligns costs with transaction volumes, particularly in market environments with decreased mortgage volumes.
The company’s latest filing shows the firm had less than five agents as of June 8, 2023, declining from 470 agents as of December 31, 2021, and about 80 agents as of December 31, 2022.
Total operating expenses dropped to $183.9 million for the six months ended June 30, 2023, driven by lower funded volume as well as reductions in headcount-related costs and other operating expenses resulting from restructuring initiatives. Compared to the same period in 2022, operating expenses declined by 80% from $903.7 million.
Better scaled down about 91% of its workforce over an 18-month period to 950 team members as of June 8, from 10,400 employees in Q4 2021.
“As we have reduced headcount drastically in previous years and have continued headcount reductions in the first and second quarters of 2023, and expect to continue through 2023, we expect employee-related costs to decrease as a smaller administrative function is needed to support an organization with a much lower headcount,” the disclosure states.
Filings show Better completed the acquisition of Birmingham Bank – a regulated U.K bank – in April 2023. The company acquired 100% of the equity of Birmingham for a total consideration of $19.3 million – consisting of $15.9 million in cash and $3.4 million in deferred consideration.
The acquisition allows Better to grow and expand existing operations in the U.K. by enabling it to offer online deposits to consumers and hold U.K. residential mortgages, the company said.
Back in April, Better announced plans to create 40 jobs in Birmingham over the next three years following the buyout in fields such as business development, savings management, marketing, operations, finance, risk management and IT.
Its 8-K filing revealed that Fannie Mae notified Better about failing to meet the agency’s financial requirements due to the company’s decline in profitability and material decline in net worth.
“Subsequent to June 30, 2023, as a result of failing to meet FNMA’s financial requirements, the Company has entered into a Pledge and Security Agreement with FNMA on July 24, 2023, to post additional cash collateral starting with $5.0 million, which will be held through December 31, 2023,” the filing stated.
The company had cash and cash equivalents of $109.9 million as of June 30, 2023, down from $318 million on December 31, 2022.
Better’s stock opened for trading at $1.20 on August 28. They were down about 93% from $17.45 when blank check company Aurora closed for trading on the stock exchange on August 23.
More news on the non-QM loan front, with the new rules set to go into effect on Friday…
The top mortgage lender in the country, Wells Fargo, has reportedly assigned some 400 underwriters to look over loans that don’t comply with the new Qualified Mortgage rule.
These so-called non-QM loans will likely be kept on the bank’s books, meaning more scrutiny is needed to ensure they don’t get stuck with any bad loans.
At the moment, the bank sells off most its loans via the originate-to-distribute model. And seeing that most fit the guidelines of Fannie Mae, Freddie Mac, or the FHA, underwriting is fairly straightforward.
Wells Fargo Home Mortgage Executive VP Brad Blackwell told Bloomberg in a telephone interview that the new specialized group of underwriters will “execute different policies and report to separate bosses.”
They’ll be located in six different locations around the country and training is scheduled to be complete by year-end.
For the record, they’ll be able to originate both QM and non-QM loans.
Non-QM Loans Could Represent 5% of Bank’s Volume
Blackwell added that non-QM loans could represent as much as 40% of the bank’s non-conforming loan volume, or five percent of all mortgages originated.
Currently, Wells has roughly $72.4 billion in non-conforming loans (those that don’t meet the standards of Fannie Mae and Freddie Mac) on their books.
The company added about $14.5 billion in such loans during the six months ending in September. Chances are most are jumbo mortgages of the utmost quality.
The expectation is that more and more banks will dip their toes into the non-QM waters as refinance volume continues to dry up.
During the final month of 2013, mortgage application volume fell to its lowest point in more than 12 years, according to the Mortgage Bankers Association.
So loan originators will certainly need to come up with new ways to drum up business.
The Bank of the West has already pledged to continue offering interest-only loans (which fall outside the QM standard), and Bank of America said it would also make them for “preferred customers.”
Of course, these offerings will probably be directed at the strongest borrowers first, including high-net worth individuals and those with pristine credit.
Over time, we might see expanded guidelines as investors pledge to buy non-QM loans, enabling lenders to pitch them with less fear.
And it could be big business. Raj Date, former deputy director of the CFPB, the group behind the QM rule, told Bloomberg the non-QM market could be a $400 billion per year business.
While that might be good for banks, one major concern is that quality could go out of the window as lenders look for new ways to make up for the shortfall, similar to the recent subprime bust. And then we’ll be back to square one.
Average U.S. mortgage rates for a 30-year fixed mortgage fell to an all-time low of 2.88% this week, the eighth time in 2020 the weekly rate has set a record in a Freddie Mac series that goes back almost five decades.
It fell from 2.99% last week, Freddie Mac said in a report on Thursday. The average 15-year rate fell to 2.44%, the lowest in almost 30 years of data, according to the mortgage financier.
Low mortgage rates help to support real estate demand by making it possible for more buyers to qualify for loans. This is because cheaper financing lowers monthly mortgage bills, which are compared to income to qualify applicants. Low rates also support price growth because buyers typically qualify for bigger mortgages.
“Mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand,” said Sam Khater, Freddie Mac’s chief economist.
The problem facing buyers isn’t the rates, Khater said. It’s the dearth of homes for sale that has plagued the housing market long before coronavirus.
In June, the inventory of homes on the market fell to a four-month supply, according to the National Association of Realtors. A year ago, the number was 4.3 months.
“We expect rates to stay low and continue to propel the purchase market forward,” Khater said. “However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes.”
Mortgage rates began tumbling in March after the Federal Reserve made a pledge to buy mortgage-backed securities and Treasuries to support demand in the bond market, which is where most U.S. home loans are packaged and sold.
NAF’s joint venture partners have access to the lender’s mortgage products and tools, including a lead source system and a “five-year protection pledge.” NAF offers various home financing options ranging from conventional to non-QM loans. “We are thrilled to be working closely with one of the most prestigious companies in real estate today,” NAF co-founder … [Read more…]
Have you ever wondered what a 9-figure amount looks like? It’s a sum of money too big to ignore, with a whopping total of 100 million to less than 1 billion. Discover more about this colossal figure and the wealth it represents
When we mention nine-figure sums, we’re talking about a truly astronomical level of wealth. To put it in perspective, nine figures represent anything from $100,000,000 all the way up to $999,999,999.
This figure surpasses the GDP of several small nations. For instance, Samoa reported a GDP of approximately 843.8 million USD in 2021.
Or consider that according to Investopedia, 7-figure wealth is what puts you among the top 0.1% of the wealthiest people on the planet. This means that having nine figures puts someone at an even more elite level, one whose luxury extends far beyond mere financial freedom.
Only a small fraction of individuals or companies globally can boast such immense wealth. However, it is not an unattainable goal. Let’s take a look at some of the strategies you can employ to accumulate substantial wealth while also examining the lifestyles and pursuits of those who have successfully achieved it.
How Much Is a 9-figure Salary?
Table of Contents
A nine-figure income signifies any earnings that flaunt nine digits, starting from $100,000,000 and soaring upwards. To put it into words, we’re discussing one hundred million dollars.
Quite a mind-boggling figure, isn’t it?
It’s like being handed the keys to a kingdom of unimaginable wealth. But remember, this is a sphere occupied by only a select few worldwide.
Their playgrounds? Often, you’ll find them in the tech sector, inheriting vast wealth or expanding an already thriving family business.
Now, let’s delve a bit deeper, shall we?
When we speak of nine figures, are we referring to the lower end close to one hundred million, the middle ground around 550,000,000, or the staggering high end nearing 999,999,999?
So, the next time you find yourself daydreaming about a nine-figure salary, remember this: It’s not just a number; it’s a lifestyle, a testament to extraordinary achievements, and a beacon of exceptional success.
And who knows? With the right mix of passion, dedication, and a sprinkle of luck, you might just find yourself joining this elite club.
After all, isn’t the sky the limit when it comes to chasing our dreams?
Examples of People Who Earn 9-Figure Incomes
Cristiano Ronaldo: A Sports Icon – With an astonishing income of $105,000,000, this celebrated athlete is not just a football superstar but also a nine-figure earner.
Safra A. Catz: Leading Oracle – As the CEO of Oracle, Safra A. Catz’s leadership prowess is reflected in her staggering earnings of $108,200,000.
David Zaslav: The Discovery Dynamo – Captaining Discovery as its CEO, David Zaslav, commands a whopping $129,500,000.
Nikesh Arora: The Palo Alto Networks Powerhouse – As the CEO of Palo Alto Networks, Nikesh Arora’s genius is rewarded with a hefty paycheck of $125,000,000.
Roger Federer: Tennis Titan – This globally recognized athlete proves that sports can indeed yield nine-figure incomes, as evidenced by his impressive earnings of $106,300,000.
Case Study: What Does A 9-Figure Earning Look Like?
Understanding the intricacies of nine-figure earnings can be a complex undertaking due to the lack of universally defined parameters. For the context of this case study, we will consider an annual income of at least $432K as the lower limit for this category. It is worth noting that any figure below this threshold would classify one into the realm of billionaires.
Renowned business magnates such as Warren Buffet and Mark Zuckerberg exemplify this earnings bracket, with annual incomes reported around $51M and marginally less than $50M, respectively.
Reaching the stature of a nine-figure income earner typically necessitates either a substantial inheritance or proprietorship of a prosperous company with diverse revenue channels. The case of Elon Musk serves as a prime example, with his considerable income derived from two distinct sources – Tesla and SpaceX.
Aspiring for this scale of income undoubtedly sets a high bar. However, with the appropriate strategy and relentless determination, it is not beyond reach. Be prepared to tread a path akin to those who have already achieved this feat.
What Is the Potential Monthly, Weekly, Daily, or Hourly Income in the 9-Figure Range?
How Much Is 9 Figures Monthly?
To figure out the monthly income from a massive annual salary, just divide the yearly amount by 12. Keep in mind that this will give you a range of values. But if you want to earn a nine-figure salary, the smallest monthly income would be $8,333,333.33.
$100,000,000 per year / 12 months
= $8,333,333.33 per month
This question might take a different perspective if you’re raking in 9 figures every month. That means your annual income would be at least $1,200,000,000 or even more.
How Much Is 9 Figures a Week?
If we were to divide the 9-figure annual salary by 52 weeks, we’d be looking at a minimum weekly income that could make anyone’s head spin – a cool $1,923,076.9! 💸💼.
$100,000,000 per year / 52 weeks
= $1,923,076.9 per week
While you’re at it, if you manage to rake in a solid 9-figure sum every week, your annual income will soar to a minimum of £52,000,000,00 or maybe even more.
How Much Is 9 Figures a Day?
Want to know how much you can earn daily from a nine-figure income? Just divide it by 365! If you make money every day, your minimum daily earnings would be $273,972.6. That’s your ticket to the nine-figure club!
Here’s the breakdown:
$100,000,000 per year / 365 days
= $273,972.6 per day
Now, let’s say you take weekends and U.S. holidays off. In that case, you’d need to earn around $381,679.3 per day to make $100,000,000 per year. It’s a good goal to aim for if you want that nine-figure salary without burning yourself out.
How Much Is 9 Figures an Hour?
If you’re seeking a nine-figure income from hourly wages, the calculations are slightly different. Just divide your per day salary by 8 hours, and voilà! The minimum number is $47,709.90per hour. This calculation is based on working days – usually 262 days per year in the US.
How Much Is 9 Figures After Taxes?
Achieving a 9-figure income is quite an extraordinary feat, one that is typically reserved for the most successful entrepreneurs, athletes, and entertainers in our society. It’s almost impossible to reach that level through a single salary alone.
Instead, individuals in this income bracket often have multiple income streams, such as investments, business ventures, and other revenue-generating activities.
Calculating the exact tax on a 9-figure income can be a challenging endeavor. Taxes can vary greatly depending on many factors, including location, type of income, applicable deductions, and more. However, it’s safe to say that anyone earning in the 9-figure range will face a significant tax bill.
What Is the Pathway To Achieving a 9-Figures Income?
If you are in pursuit of a 9-figure income, it is essential to have an understanding of the components that fuel this elusive status. What sets apart these high-net-worth individuals from the rest is their capacity to create multiple streams of passive income and capitalize on them.
Here are some tips to help you achieve this milestone:
Acquire Valuable Skills and Experience
The first step towards achieving a 9-figure income is building a solid foundation of high income skills and experience in a high-value field. This could be anything from technology and finance to entertainment and sports. The key is to become exceptionally good at what you do, often necessitating years of dedication, learning, and practical application.
Build or Join a High-Growth Venture
Next, it’s super important to either build or get involved in a high-growth venture. This could mean starting a business with a game-changing idea or joining a rapidly expanding company in a leadership position. The aim here is to use your unique skills and experiences to create substantial value and wealth, which could potentially lead to a massive income if the venture becomes incredibly successful.
Invest Wisely and Diversify Your Income Streams
Who said you can’t have your cake and eat it too? Investing in the stock market, real estate, bonds, and other alternative investments is another way to generate a 9-figure income. It’s important to diversify your portfolio across multiple strategies so that you’re not overly exposed to any one asset class.
Let’s give you an example.
If you’re already running a successful business, consider investing in cryptocurrency or another digital asset class to increase your income streams. This could provide an additional source of passive income that can help solidify your journey to a 9-figure salary.
Equities and Derivatives Trading
The stock market is an incredibly powerful tool that can help you to achieve a 9-figure income. Through equity and derivatives trading, you can tap into the world’s most lucrative markets and make substantial returns on your investments in a short amount of time.
Learning how to navigate this complex ecosystem of risk and reward requires patience, dedication, and a lot of practice. Start by investing in the stock market or trading on a simulated platform to get comfortable with the process before taking it to the next level.
Leverage Networks and Opportunities
Networking is a critical component of achieving a 9-figure income. By cultivating meaningful relationships with influential people in your industry, you can open doors to opportunities that might otherwise remain closed. These could include partnerships, investments, or high-profile job offers that can significantly boost your income.
Jobs That Pay 9 Figures
Earning a nine-figure salary is an incredibly rare achievement reserved for the top echelons of various lucrative industries. Here are some of the highest-paying jobs and industries that can bring in nine-figure salaries.
Tech Company Bosses
Tech company bosses, particularly those at the helm of companies like Amazon, Facebook, and Tesla, are among the highest earners globally. Their compensation often comes in the form of stock options, which can value in the hundreds of millions or even billions when their companies perform well.
Examples include:
Elon Musk, CEO of Tesla ($242.4 billion)
Jeff Bezos, CEO of Amazon ($151.5 billion)
Mark Zuckerberg, CEO of Facebook ($103.4 billion)
Professional Athletes
In the world of professional sports, athletes like Cristiano Ronaldo, Lionel Messi, and LeBron James have managed to secure contracts and endorsement deals that push their annual incomes into the nine-figure realm. These athletes excel in their respective sports and have built strong personal brands, attracting lucrative sponsorship deals.
According to reports, these athletes earned more than $100 million in a single year:
Hollywood Celebrities
Hollywood is no stranger to nine-figure earners. Actors like Dwayne Johnson and Robert Downey Jr., thanks to their roles in blockbuster franchises, command massive salaries. Additionally, they earn significantly from endorsements, producing roles, and profit participation deals.
Media Stars
Media stars, especially those with a strong presence on digital platforms, can earn nine figures. For instance, YouTubers and influencers with millions of followers can generate substantial income from ad revenue, brand partnerships, and merchandise sales.
Hedge Funds & Investment Bankers
Investment bankers and hedge fund managers are some of the highest earners in the financial sector due to their expertise. Some notable examples include:
Ray Dalio, founder of Bridgewater Associates ($19.1 billion)
David Tepper, hedge fund manager ($18.5 billion)
Carl Icahn, founder of Icahn Enterprises ($10.1 billion)
Pop Superstars
The music industry has always been a lucrative field for successful artists. Pop superstars like Taylor Swift and Beyoncé have made fortunes from their music sales, concert tours, and endorsement deals. These musicians not only create hit songs but also build powerful brands that amplify their earnings.
Entertainment (actors, singers, dancers, etc.)
Performers in the entertainment industry, including actors, singers, and dancers, can achieve nine-figure incomes. Successful film actors can earn millions per movie while top-charting musicians make a significant portion of their income from touring. Broadway performers and dancers in high-demand shows can also command high salaries.
Top-notch Business Owners
Business owners, especially those who own large corporations or successful startups, can earn nine figures. This income comes from their business profits and, in some cases, from selling their businesses. Entrepreneurs like Elon Musk and Jeff Bezos have made billions from their ventures.
These careers represent the pinnacle of earning potential in their respective fields. However, it’s essential to note that reaching this income level requires exceptional talent, hard work, and often a good dose of luck.
Are 9-Figures Rich?
When we talk about money, figures, and digits start dancing in our heads. Six figures? That’s quite impressive. Seven figures? Now you’re playing with the big boys. But when we leap into the world of nine-figure incomes, we’re talking about a whole different ball game. It’s like comparing a kiddie pool to the Pacific Ocean!
A nine-figure income means someone is raking in between $100,000,000 and $999,999,999 annually. That’s right. There are more zeros in that figure than in a beginner’s Sudoku puzzle! This income bracket places individuals among the financial titans of the world. To put it plainly, if you’re earning nine figures, you’re not just rich—you’re Scrooge McDuck swimming in a vault of gold-level wealth.
But let’s be real, nine-figure incomes are as rare as a unicorn at a donkey convention. Even some of the world’s wealthiest individuals, like Bill Gates and Warren Buffet, didn’t make their billion-dollar fortunes overnight. It took years of smart decisions, a bit of luck, and probably a few sleepless nights.
And don’t forget, these ultra-wealthy folks aren’t waiting for a paycheck every month. Their wealth comes from various sources, including investments, real estate, and businesses3. They’ve got their fingers in so many pies; they could open a bakery!
What Does a 9-Figure Lifestyle Entail?
Living a 9-figure lifestyle is beyond the realm of what most people could even imagine. It involves not just extraordinary wealth but also the responsibilities and opportunities that come with it. Here’s a detailed look at what such a lifestyle might entail:
Extreme Luxury
A 9-figure lifestyle allows for some of the most opulent luxuries in the world. For instance, consider real estate: billionaires often own multiple properties around the globe. According to a report by Economics Times, the average billionaire owns 4 homes, with each worth nearly $20 million.
Traveling is another area where this wealth is evident. Private jet travel is commonplace among this group. The cost of owning a private jet can range from $3 million to over $90 million, not including the ongoing costs of maintenance, fuel, and crew salaries.
Philanthropy
Philanthropy is a significant aspect of a 9-figure lifestyle. Many ultra-wealthy individuals are committed to giving back to society. For example, Warren Buffett, one of the richest people in the world, pledged to give away 99% of his wealth to philanthropic causes.
The Giving Pledge is another example of this. Initiated by Bill Gates and Warren Buffet, it’s a commitment by some of the world’s wealthiest individuals and families to give away more than half of their wealth to solve societal problems.
Investments
Individuals with a 9-figure income often have vast and diverse investment portfolios. For instance, Jeff Bezos, the founder of Amazon and one of the wealthiest individuals on the planet, has investments spanning multiple industries. He owns The Washington Post, has a venture capital firm called Bezos Expeditions, and invests in space exploration with his company Blue Origin.
Personal Staff
Having a 9-figure income often means employing an extensive personal staff to handle daily affairs. For example, Oprah Winfrey, a billionaire media mogul, reportedly employs a team of over 3,000 staff, including gardeners, chefs, housekeepers, and security personnel.
This level of staffing isn’t uncommon among the ultra-wealthy. After all, managing a 9-figure lifestyle requires a lot of planning and assistance to make sure everything runs smoothly.
Political Influence
The ultra-wealthy have significant influence in politics due to their large contributions to political campaigns and the influence they can wield over policy decisions. This influence can be used for both good and bad purposes, depending on who is wielding it.
However, the effects of political influence by wealthy individuals shouldn’t be underestimated. It can have a profound impact on policy decisions and shape public opinion in powerful ways. This level of influence is not available to everyone, but those with 9-figure incomes typically use it to their advantage.
Privacy and Security
With great wealth comes the need for privacy and security. People with a 9-figure income often invest in advanced security systems, hire personal security staff, and take measures to maintain their privacy.
This isn’t just to protect their money; it’s also about protecting themselves and their families from potential threats. After all, when you’re one of the wealthiest people in the world, there are bound to be a lot of eyes on you.
High-End Experiences
Those with a 9-figure lifestyle often have access to experiences that are out of reach for most. This can range from private concerts with top musicians to exclusive dining experiences with world-renowned chefs.
This level of wealth also opens up opportunities to travel to the most luxurious places in the world. From private island getaways to luxury cruises, the experiences available to 9-figure earners are limited only by their imagination and budget.
The Bottom Line – Making 9 Figures
Taking all of this into account, it is clear that those with a 9-figure income have access to exclusive and luxurious experiences, as well as the privacy and security often associated with great wealth. This level of influence can also be extremely powerful. Therefore, it should not be underestimated or overlooked.
Overall, 9 figures is an amazing achievement and one that requires hard work and dedication. It is often an indicator of success and can open up a world of new possibilities for those who have achieved it.
Regardless of your current financial status, never forget that anything is possible with determination and perseverance! With the right attitude and mindset, you, too, could one day reach 9 figures or more. Start planning today, and remember to take every opportunity that comes your way. With a bit of luck and the right attitude, success is just around the corner.
FAQs – Making 9 Figures
How many words are nine figures?
Nine figures is a term used to refer to incomes between $100,000,000 and $999,999,999. It does not refer to the number of words.
Does anyone make nine figures?
In the United States, a remarkably small number of individuals achieve the remarkable milestone of earning nine figures or more. According to a report by Market Watch, only 205 people in America earn an astonishing sum of over $50,000,000 in wages alone annually.
To put this into perspective, a nine-figure income would be twice the amount of $100,000,000! As a result, the exclusivity of this income bracket is amplified, leading to a limited number of individuals who can boast such astronomical earnings.
What do “figures” mean in money?
Figures is a term used in accounting and finance to refer to digits of numerical values. It does not refer to physical currency or coins. For example, if you have $50,000, five figures are present (50000). This can also apply to other forms of money, such as stocks, bonds, and investments.
What is a nine-figure job?
A nine-figure job is a term used to refer to the careers of those who have achieved the tremendous milestone of earning nine figures or more annually. This could include professionals from various industries such as tech, investment banking, and sports.
These individuals are typically highly successful in their fields and command higher salaries than other professionals due to their extensive experience and knowledge.
What’s the difference between a 9-figure salary and a 9-figure income?
A 9-figure salary is an annual income of $100,000,000 or more. A 9-figure income is a measure of all sources of income that a person has, including wages, investments, and other revenue streams like royalties. This means that a person can have a nine-figure income without having an extremely high salary.
For example, someone who earns a salary of $1,000,000 but has investments of $100,000,000 would have a 9-figure income. This demonstrates why it is important to consider all sources of income when assessing the overall financial health and status of an individual or family.
What is the difference between 9 figures and 8 figures?
Eight figures refer to financial values between $10,000,000 and $99,999,999. In contrast, 9 figures are incomes of $100,000,000 or more. This is an important distinction to make when discussing the wealth of individuals because it shows how much greater the income of a nine-figure earner is compared to someone with eight figures.
For example, someone who makes $100,000,000 in a year would have twice the earnings of someone who makes $50,000,000. This is why it is important to consider figures when discussing wealth and income, as they can provide valuable insight into the financial status of an individual or family.
Is 9 figures a lot of money?
Yes, 9 figures is a lot of money. It is an astronomical amount that few individuals ever reach. As such, it demonstrates the impressive achievements of those who have managed to achieve nine-figure incomes and provides insight into their level of success and financial status.
Washington regulators are encouraging banks and credit unions to test their ability to borrow from emergency lending facilities regularly to ensure they are able to access liquidity in a pinch.
The Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and National Credit Union Administration issued guidance Friday on how depositories should “regularly evaluate and update their contingency funding plans.”
Both Silicon Valley Bank and Signature Bank struggled to use the Fed’s discount window in March amid significant upticks in depositors’ withdrawal requests. Regulators have concluded that better preparation likely would not have saved the banks from failure, given the size of their respective runs, but their guidance notes that the episode “underscored the importance of liquidity risk management and contingency funding planning.”
Friday’s guidance is the first formal recommendation on last-resort borrowing since the bank failures, but Fed officials have called on banks to be more proactive in their discount window preparations in recent months. On Wednesday, Fed Chair Jerome Powell discussed the topic during his post-Federal Open Market Committee meeting, noting that the process can be “clunkier” than banks anticipate.
“Banks are now working to see that they are ready to use the discount window, and we are strongly encouraging them to do that — banks broadly,” Powell said, adding that depositories should be “much more ready” to access liquidity than they have been.
The guidance notes that banks should familiarize themselves with the operational steps required to borrow from the discount window as well as the NCUA’s credit liquidity facility. It also calls for reviewing and revising contingency funding plans “periodically and frequently.”
The agencies encouraged banks to have renewed contacts with emergency lenders, including the Fed and the Federal Home Loan banks, the latter of which is often seen as a more preferable source of emergency funds.
Advances from Home Loan banks carry less of a stigma than discount window loans, but they can be harder for banks to access on short notice. Home Loan banks impose caps on how many advances member banks can take out and they accept different types of collateral. Officials at the Federal Reserve Bank of New York said a misunderstanding of the differences between the two facilities contributed to Signature’s difficulties.
The guidance also encourages depositories to “pre-pledge” collateral to the discount window, if they are relying on it as a source of emergency liquidity. The process involves drawing up contracts for assets to be transferred to the facility ahead of time so the transaction can be executed more quickly.
“Depository institutions that include the discount window as part of their contingency funding plan should also consider conducting small value transactions at regular intervals to ensure familiarity with discount window operations,” the document notes.
Regulators also noted that credit unions should be aware of the distinct features of the Central Liquidity Facility, which is housed within the NCUA but has shared ownership between member institutions and the government. Credit unions with $250 billion of assets or more must have access to at least one federally backed liquidity source — either the Central Liquidity Facility or the discount window.
Conventional wisdom says that people spend more when they use credit than when they use cash. But is it true? In The Money Answer Book, Dave Ramsey writes:
When you pay in cash, you can “feel” the money leaving you. This is not true with credit cards. Flipping a card up on a counter registers nothing emotionally. If you use plastic instead of cash you will spend 12 percent to 18 percent more. This is money you could have saved.
Though he fails to cite his sources, Ramsey’s right — most people do spend more when they pay with credit. The September 2008 issue of the Journal of Experimental Psychology: Applied contains research into the effect of payment type on consumer behavior [free 268kb PDF of entire article]. From the press release:
The conclusion that cash discourages spending, and credit or gift cards encourage it, arises from four studies that examined two factors in purchasing behavior: when consumers part with their money (cash versus credit) and the form of payment (cash, cash-like scrip, gift certificate or credit card). The results build on growing evidence that, as the authors [Priya Raghubir and Joydeep Srivastava] wrote, “The more transparent the payment outflow, the greater the aversion to spending, or higher the ‘pain of paying.’” Cash is viewed as the most transparent form of payment.
In July, Ari Shapiro of NPR’s Morning Edition talked with Cornell economics professor Robert Frank about why people spend more when using credit instead of cash. Frank echoes Dave Ramsey: “Parting with [cash] is just a more vivid sensation than than abstract act of signing a pledge to pay sometime later in the future.”
During their conversation, Shapiro noted, “When McDonald’s started allowing credit card purchases, the average purchase went from $4.50 up to $7.00. That’s a huge increase.”
I couldn’t find numbers to support Shapiro’s claim; however, I did locate an article that quotes an executive from the company that installed McDonald’s credit-card processing systems. “When an establishment accepts credit cards, the average ticket size goes up,” he said. “We anticipate a 40 percent increase in the average ticket size for those franchises implementing credit card processing for the first time.”
Just being aware of the tendency to overspend with credit can help you apply the brakes. Here are other methods that work:
Don’t use your credit card for luxuries. Use it only for things you need, like groceries or gasoline. I follow this rule religiously, and I believe it’s one of the reasons I’ve been able to avoid spending too much.
Use your credit card only for big expenses. Kris doesn’t use her single credit card for small, spontaneous purchases such as a nephew’s birthday gift. Instead, she saves it for big purchases, like a food processor or a dishwasher. She approaches these pre-planned expenses differently, and isn’t likely to be lulled into spending too much just because she’s using credit.
If you’re headed to a personal “trouble zone”, leave your credit card at home. Don’t take it with you to the mall, for example, if you know you’ll be tempted to use it.
Don’t just look at your total bill — pay attention to the cost of each thing you’re buying. When you pay with credit or gift certificates, it’s easy to focus on the grand total instead of the cost of individual items.
Not everyone spends more with credit, of course. Some GRS readers report the opposite experience — they are stingier with credit than with cash. Either way, it’s in your best interest to know yourself and your spending weaknesses so that you control your expenses rather than being at the mercy of your environment.
One of the perhaps lesser-known, but fastest growing mortgage companies that is making big strides in the industry is Caliber Home Loans.
The national mortgage lender, which is based out of Coppell, Texas, just north or Irving, TX, has been around since 2008, which was essentially when the mortgage industry went bust.
Since then, they’ve grown into a mortgage powerhouse and are now a top-10 mortgage lender nationwide, with aspirations to be top five sooner rather than later.
And it turns out they caught the attention of suitors in the process.
In August 2021, the company was acquired by New Residential Investment Corp. (Newrez).
Caliber Home Loans History
The company rebranded in 2008 around the time of the housing bubble burst
Started with government mortgages such as FHA loans
Then began offering conventional loans backed by Fannie Mae and Freddie Mac
Have grown into a top-10 mortgage lender via a number of large acquisitions
Funded more than $24 billion in home loans via retail channel in 2019
Planned to go public with $2+ billion valuation
Later acquired by Newrez in the second half of 2021
Back in 2008, around the time of the financial crisis, the parent company Caliber Funding went through a rebranding process and acquired the lending assets of the CIT Group, which it later renamed Vericrest Financial.
A year later, they obtained the ability to directly endorse FHA loans and received direct lending authority for VA loans, meaning lending decisions could be made in-house.
In 2012, they received Freddie Mac seller approval and began issuing securitizations. They also gained Ginnie Mae approval at that time, and loan servicer approval for both.
Caliber Home Loans Inc. was born in 2013 when Caliber Funding with Vericrest Financial merged into one brand, which coincided with their correspondent lending business and Fannie Mae seller approval.
In mid-2016, Caliber acquired First Priority Financial, expanding their footprint in northern California and the western U.S., including states like Idaho, Iowa, Oregon, Washington.
Not long after, they became one of the top mortgage lenders in the country, with over 3,500 employees nationwide.
They refer to their loan officers as loan consultants, though they also partner with mortgage bankers and wholesale lenders to originate loans through various channels.
And they pride themselves on being a mortgage-only shop, as opposed to a mega financial institution that also doles out credit cards, life insurance, and student loans. They’re mortgage-focused and only sell home loan products.
Their latest big move was in 2017 when they acquired Banc Home Loans, which resulted in an 1,800-strong sales force across 340 retail branches located throughout the United States.
Aside from retail, Caliber’s originations come via a booming correspondent channel, along with a wholesale channel, meaning mortgage brokers can offer their loan products to consumers as well.
Speaking of, they recently launched a mobile app for their broker partners that uses Caliber’s proprietary H2Online system, which allows them to price and lock loans from their smartphone.
So it’s clear their mission is to grow and become a household name in the mortgage industry, and they appear to be on track.
In fact, they now have plans to go public with a valuation greater than $2 billion, per the WSJ.
What Does Caliber Home Loans Offer?
Home purchase loans
Rate and term refinances, cash out refis, and streamline refinances
Conforming loan products including Freddie Mac BorrowSmart
Jumbo loans and high-balance mortgages
FHA loans
VA loans
USDA loans
Renovation loans
Portfolio loans such as interest-only products
HELOCs
Fixed mortgages
Adjustable-rate mortgages
Now let’s talk about their loan programs. As alluded to in their company history, they’re equipped to provide all types of loans backed by Fannie Mae, Freddie Mac, the FHA, and the VA.
You can also obtain a USDA loan from Caliber Home Loans, and they have specialty products like the 203k renovation loan if the real estate you’ve got your eye on needs a little work.
In terms of government home loans, they’ve got everything. In fact, Caliber even has a special Military and Veteran Lending division solely for VA loans. They also been recognized as a Military Friendly Brand two years in a row (2017 and 2018).
In late summer 2017, they announced the funding of their 10,000 VA purchase loan, so it’s clear they’ve got some experience in that department.
For conventional loan offerings, they have both conforming stuff (Fannie/Freddie) along with jumbo loans, and even a jumbo interest-only ARM.
You can get a HomeReady or Home Possible loan with just 3% down, and they have all loan types from 30-year and 15-year fixed mortgages to a wide array of adjustable-rate mortgages.
If you’re looking for more than just FHA loans and Fannie and Freddie stuff, they’ve got your covered.
In fact, they have some proprietary home loan products like their “Caliber 5-Star ARM” that adjusts once every five years, as opposed to annually once the first five years go by (like the classic 5/1 ARM), whose name I assume is an ode to the Lone Star State.
This 5/5 ARM can be beneficial if the associated mortgage index remains low throughout those five years, giving the homeowner another five years of safety from upward rate adjustments.
Of course, it can also backfire if the first adjustment is high and locked in for a full five years.
With regard to jumbo loans, you can get loan amounts as large as $2.5 million, which should satisfy most folks’ needs. And down payments start as low as 5%.
That jumbo interest-only ARM is one of their flexible non-QM offerings, but does require a minimum 700 credit score, which means only the most creditworthy borrowers need apply.
Ultimate Home Buying Experience
I’ve written about this technology before – in short, it allows for the digital delivery of income, asset, and employment history to speed up the loan process, similar to how Rocket Mortgage works.
If all works out, Caliber Home Loans aims to get your loan from application to closing in as little as 10 business days.
That’s pretty fast, and might give you an edge if you’re a first-time home buyer in a competitive housing market.
There’s also a Caliber Home Loans for Borrowers app that allows customers to track their loan as it moves through the process. They also can opt-in to notifications for any issues or problems that arise, and receive updates such as loan approval or denial.
Once the loan closes, they can make payments, set up recurring payments, via escrow account and payment history, and even request the removal of private mortgage insurance.
Caliber Has Some Unique Home Loan Options
Loan amounts as high as $3 million with credit scores as low as 650
Loan programs for those who have late payments or a recent short sale, foreclosure, etc. with FICO scores as low as 610
Loan amounts as low as $100,000 for both investors and primary residences
A home loan financing program for new builds
HELOCs for those wishing to tap equity
Premier Access
They also have a Premier Access portfolio program that allows loan amounts as high as $3 million with lower credit score requirements down to 650. And the loans may not require private mortgage insurance.
It’s also possible to use asset depletion to qualify for a mortgage through the Premier Access lending suite, and cash-out refinances up to $750,000 are also permitted.
Elite Access
Their newest portfolio loan program, known as “Elite Access,” is a jumbo loan product that allows loan amounts as high as $3 million with as little as 5% down payment. However, a minimum 700 FICO score is required.
It is being offered in both fixed and adjustable options to satisfy home buyers and those refinancing existing mortgages (up to 95% LTV) in high-cost markets nationwide.
Homeowner’s Access
This is Caliber’s loan suite for those who have late mortgage payments, or a recent short sale, foreclosure, or bankruptcy filing.
It features shorter waiting times to buy a home, the acceptance of non-traditional credit history, and higher DTI ratios up to 50%. You may also be able to purchase a home with nothing down by using gift funds, and credit scores go as low as 610.
Fresh Start Program
This suite of home financing solutions seems to be even more aggressive, offering home loans with no seasoning requirement after bankruptcy, short sale, deed-in-lieu, or foreclosure.
The Fresh Start program also offers low down payment options and low minimum credit scores, along with loan amounts from $100,000 all the way up to $1 million.
Investment Program
Additionally, they have a suite of loan programs designed especially for real estate investors, including low down payment requirements on loans up to $2 million.
They’ll go as low as 620 in terms of credit score and allow loan amounts as low as $100,000.
More importantly, they provide the option to purchase an unlimited number of investment properties, and offer things like delayed financing, which allows you to buy with cash then quickly do a rate and term refinance.
National Builder Program
Lastly, they have a home builder financing arm that specializes in providing mortgage loan financing on new homes.
They have a dedicated loan fulfillment team that can offer financing of all types on all sorts of properties, including non-warrantable condos.
And they allow mortgage rate locks for as long as 12 months, yes, that long. Well, for some reason 360 days, but that’s still pretty unheard of! So if it takes a while to close, they can secure your rate.
Along those same lines, they offer a service called “Doc Lock,” which secures income and asset verification for up to six months on conventional home loans.
Oh, and they recently launched a HELOC known as the “HomeAccess Your Way Equity Line of Credit.” It appears to have a 30-year term, including a 10-year draw period and a 20-year repayment period.
So they’ve got plenty of loan products and a potentially streamlined loan process to serve mortgage loans to customers nationwide across all channels.
Caliber Home Loans Mortgage Rates
Caliber mortgage rates aren’t advertised
You won’t see them on their website
However I came across some of their rate sheets
That seem to be in line with what most other lenders are offering
They don’t seem to openly advertise their mortgage rates, unlike other banks and mortgage lenders, you won’t find them on their website.
However, I’ve seen some lender ratesheets from Caliber and their pricing seems to be on par (no pun intended) with what else is out there. Of course, that’s the wholesale lender channel, so results may vary across other channels like retail and correspondent.
From what I can tell, their mortgage rates aren’t necessarily any higher or lower than the average rates available. Of course, take the time to shop your rate with other lenders to ensure it’s the best it can be.
Caliber Home Loans Reviews
On Zillow, the company has a 4.96-star rating out of 5, which is pretty much as good as it gets aside from perfection.
That strong rating is based on nearly 6,000 customer reviews, meaning it’s not a fluke.
Since they’re a very large company, you may want to drill down and look at individual loan officer reviews for Caliber, which you can do on the Zillow website.
Many of the reviews said both the interest rate and closing costs were lower than expected, which is a good sign if your lender decision is driven by price.
On LendingTree, they have a 4.2 out of 5-star rating based on more than 700 customer reviews. While not as good, it’s still mostly positive.
They are a Better Business Bureau accredited company and have been since 2014.
Caliber Home Loans Inc. currently has an ‘A’ rating with the BBB and has just over 3 out of 5 stars based on about 200 customer reviews.
They’ve got some bad reviews, but that’s typical because people are more likely to leave a bad review than a good review. But feel free to peruse them as you see fit.
And pay attention to closing costs, which can vary widely as well.
Why Choose Caliber Home Loans?
Caliber offers a wide selection of home loan types to fit most loan scenarios
They’ve got smartphone apps for borrowers and all their business partners
Along with the latest technology to go digital and upload/track important documents
And they offer home loans via all major channels including retail, correspondent, and wholesale in all 50 states
To sum it up, Irving, Texas-based Caliber Home Loans has a home loan for just about any purpose, and the company originates loans through various avenues to suit all personality types. They’re also a national mortgage lender licensed to do business in all 50 states.
This means you can take advantage of their mortgage products via a retail branch, a mortgage broker, or even another correspondent lender.
And unlike many mortgage lenders, Caliber retains the servicing rights to their home loans, meaning you’ll make your monthly mortgage payments to them, not some other company. This appears to be their pledge to make you a customer for life.
As a servicing customer, you might be eligible for a mortgage recast if your loan type is eligible. The minimum principal reduction payment is $5,000, which when applied, will lower your future monthly mortgage payments.
At last glance, their loan servicing portfolio had swelled to over $100 billion, while monthly loan volume is nearing $2 billion.
As such, I expect Caliber to become a household name in the next decade, if not sooner.
As always, be sure to compare all your loan and lender options to ensure you receive the best pricing and service on your home loan. There are lots of choices out there, so make sure you get more than one quote.