Small Balance Commercial Loan

Property Types- All types except: Gas stations, Assisted Living, Land, Metal Stamping, Anything with Heavy Chemical Use

Purchase, Cash Out and Rate and Term Refinance: Use this loan to capitalize on the distressed commercial real estate for sale. Distressed doesn’t mean it’s not cash flowing, especially if you buy it right!

Loan Amounts- $75k-$400k. Contact us for loan amounts greater than 400k. Our investment bank originates commercial loans from $1mm – $30mm

LTV- 70% Is the maximum loan to value and is for the strongest properties and borrowers. Plan on 60-65%.

***Restaurant Max 55%
***Auto related Max 60%
*** Religious Organization Max 80%

Par Rates-
ARM’s will adjust quarterly and are tied to prime.
Amortized over 25 yrs . Rates change daily and are currently trading 300-500 bps over prime (Prime Rate is 3.25% currently).
Fixed Rate’s are amortized over 25 years . Currently trading at 600-800 bps over prime

Seasoning- 2 yrs is Mandatory- Must own property for AT LEAST 24 months to be considered for a refinance especially cash out,

Sourcing of Funds- Mandatory and important. Must be able to explain large deposits. Must make sense.

States NOT allowed- MI, OH, NV, HI, Al, AK, VT, WV

Prepay Penalty- 5% for 5 years

No upfront fees- ZERO

Standard Fees Are- $750.00 Doc, $750.00 Environmental, $205 Tax Service, Title

Appraisal- Paid COD Escrows- Taxes Only

Credit Notes- Full Recourse to sponsor. 600 + scores only. If low 600 score sponsor must have a verifiable explanation of major life event to be considered for an exception.

Mortgage History- 0 x 30 last 12 mos. No foreclosure. Bankruptcy will be considered if +600 score is current and borrower has a perfect mortgage history on the subject property.

Stated Income- Ok for strong borrower and solid cash flowing deals

Turn Time – Close less Than 21 days after appraiser views the property. We work off of a verbal value from our appraisers.