He inherited 1million dollars from his father and now wants to invest in town homes, we don't want to borrower because he is not experienced and doesn't know what he is doing. As a bank, we don't have to extend credit as long as it is not one of the prohibited basis? Correct? If yes, can we just put inexperienced for the denial reason? Any advice will be greatly appreciated. TIA

Is he doing this through a company? If you don't finance start-ups, then you use length of time in current business. Does he otherwise qualify? The fact that someone has a $1MM in the bank has nothing to do with cash flow.

AZloan, I'm sure that your loan policy has a section on undesirable loans (or undesirable credits). That would be your best bet. The fact that someone is rich, does not make them a good credit risk, if they are outside their area of expertise. Like Mr. Carey indicated, time in current business would be a good one.

Rocky, that is a good idea to look at the loan policy. I will do that. Thank you both for your replies.:)