About CFS Staff Investment Opportunity Lending Policies Portfolio Cross-Section

Lending Policies

Cambridge Financial Services, LC, lends money on real estate only. Typically, CFS will loan no more than 65% of the value of the property. Most loans are based on an amortization period of 30 years and they have a 3 year balloon.

CFS lends money at rates considerably higher than those of conventional lenders but typically makes loans to people in situations where they are unable to obtain funds from other sources. Though blemished credit is sometimes the reason for the inability of the customer to find funds elsewhere, the majority of Cambridge's loans are made to people who have good credit.

CFS requires certified appraisals, title insurance, credit information and all documentation that any prudent lender would require in order to close a loan.

In most cases, one or more of the CFS members personally visits and inspects the real estate collateral. Additionally, they personally meet with the borrowers to determine their need and their ability to repay the debt.

CFS views itself primarily as an interim lender wherein it can help the customer achieve some short term goals and then refinance at a lower rate prior to the balloon date of the loan.

CFS prides itself in having a very low exposure to risk and as of the 2nd quarter of 2005, there have been no foreclosures on any of its loans.