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1. In what States does the program offer loans?

Nationwide & Canada

2. What are the advantages of borrowing on the Royalties thru this program?

Generally, local banks are unable to provide you with a royalty loan.  Due to the amount of paperwork and mineral valuation that banks are required to contend with, it usually is not a cost effective loan.  As a borrower, you will most always be required to provide personal financial information, credit reports, and company financial information if applicable.  A royalty loan with a bank will most often require a personal guaranty of the loan.  Banks will also pursue foreclosure and take ownership of the royalty to satisfy the loan in the event of default or non-payment.  This program offers a simple loan with no personal liability, no credit check, and no foreclosure.

3. What qualifications do I need to be eligible for a loan?

You must be a mineral royalty owner and receive monthly royalty payments.

4. What information will I have to provide Royalty Lender to process my loan application?

Initially, you will need to provide a copy of your last monthly royal Statement and a copy of the check (or payment stub).  If your income meets the minimum requirement, you will then need to provide a copy of the lease or legal description of the property on which the well is located.

5. If I have poor credit or a low credit score, can I still qualify for a loan?

Yes, Bad credit is not usually a problem. 

6. What determines the loan amount?

Your loan amount will be determined by the amount of your monthly royalty payment.  The loan amount is up to (25) twenty-five times the monthly royalty payment.

7. Is there a minimum loan amount?

Yes, the minimum loan amount is $15,000.  If your monthly royalty income is $600.00 or greater, you would be eligible for a loan.

 
8. Are there any fees associated with the loan?

Yes, there is an origination fee associated with the loan equal to 4% -7% of the total loan amount.

 
9. How will I make my payments on the Loan?

You will execute a Deed of Trust and Assignment of the royalty.  The monthly royalty income payments will represent your monthly loan payment until the loan is paid in full.

 
10. How long does it take?
Usually a loan can close within two weeks after receiving a signed loan quote and supporting documents.  This program is straightforward, confidential and fast.

11. During the term of the loan, how will I pay my ad valorem taxes on my royalty?

You will have the option of requesting the Lender to pay the ad valorem taxes each January during the term of your loan.

12. When will I be able to start receiving my royalty income again?

Once your loan has been paid in full, the lender will release its lien and assignment.  At that time, the royalty payment would be re-directed and sent to you.  

13. What type of loan will I have and what will the interest rate be?

The loan will be a simple interest loan, open ended or re-advancing.  Interest will be calculated on a simple interest basis accruing daily.  The interest rate can vary depending on the rate environment.  Please call to inquire about current rates. 

 
14. If I am able, can I pay off the loan early and if so, is there a penalty?

You may pay off the loan at any time and there is no penalty associated with the payment.

15. What if my oil, gas and minerals are subject to a mortgage? 

If the land associated with your royalty income is subject to a mortgage, you will need to obtain a release of the oil, gas and minerals from your mortgage company.  We can help you with the process.

 
16.  What can prevent me from ontaining a loan?   

You must be 18 years of age and your minerals must not be subject to a lawsuit, judgment, tax lien or active bankruptcy.  If you have any of the above issues, complete the application and let us see if we can work thru them.


Royalty Loan Application (17) web.pdf


Oil-Gas App for WorkingInterest 12.14.pdf
 

 
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