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Commercial Loans with a Full Documentation Requirements
Program Overview:
Documentation: Full - 2 years of employment, income, assets & liabilities.
Reserves: required 2 month sourced reserves. (seasoning is not required).
Loan size: $100,000 to $1.5 million.
Loan purpose: Purchase, Rate/Term Refinance, Cash-out Refinance.
Loan to Value up to 97% for owner occupied* with an A credit. (for purchase and for refi/cash-out).
* Owner-occupied must have at least 75% of ownership.
Loan to value up to 90% for commercial investments.
Credit scores: A is 680+. A- is 640+. B is 580+.
Terms: 15, 20 & 30 years. Fully amortized.
Loan types: 6-month Adjutable. 2, 3 & 7 years Fixed rate. Declining fixed-rate. (With a benefit: Rate will come down 0.5 point every 5 years if borrower pays on time).
No Interest-Only program and no balloon program.
Who are these eligible borrowers? first time investors, business owners, medical professionals and attorneys with their own practices, purchasers of commercial condo units, owner-occupied condos within an office building, experienced investors looking for maximum leverage to use their capital for continued investments and existing property owners.
Submission: 1003 loan application (similar to residential applications). Tri-Merge credit report. Loan Supplement (property information). Loan submission form. Purchase/Sale Agreement (if applicable).
I will supply you with the above forms needed and will assist you with filling them up.
The Advantage of common sense underwriting: Two approaches:
* DTI : Debt To Income is calculated by dividing the total monthly debt payments by the total gross monthly income.
* DSCR : Debt Service Coverage Ratio. It is the property ability to pay its debt.
Rental income minus Vacancy & collection losses (5%) minus Operating expenses = Net Operating Income.
DSCR = Net Operating Income devides Principal & Interest Payments.
Parallel processing: Multiple underwriting functions occur simultaneously, no loan committees.
Appraisal: The appraisal is the key to the process. Commercial appraisals are more costly and take more time than residential appraisals. The cost is usually from $1,500 to $4,000 and it may take up to 4 weeks due to Limited Comparables - Unique Properties - Extensive Market Data.
The appraisal will be ordered by the lender.
Appraisal benefit: The lender will look & review an appraisal that was done in the last 6 months, if it is a "fall out" from another bank!)
Closing times: Between 30 to 45 days in most cases.
An exemption/benefit example *:
If you are purchasing (or refinancing) 5 Town-Homes at ONE TIME, in 5 different parts of the COUNTY...we will consider it as ONE LOAN ONLY.
* You cannot sell part or some in the future because there is no partial release. So if you want to sell it will be all the units involved in this one-loan.
* Please note that mortgage programs and/or rates are subject to change by the lenders on a daily basis and without notice.
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Wholesale Small Balance Commercial Lending (RE-55):
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Program Highlights:
- Loan Amounts From $50,000 to $8,000,000
- Most Commercial Property Types Considered
- Stated Income: Investment Property Only
- 80% LTV Multifamily & Mixed Use Properties
- 90% LTV Purchase Money O.O. (Not Multifamily)
- 75% LTV Cash Out On Most Properties
- Low Competitive Rates and Terms
- Fast Fundings |
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Agency Multifamily Program (WCB1 - 03/01/08)
• Adjustable loans from 4.969%, 5 year fixed from 5.850% and 10 year fixed from 6.450% (rates subject to change in markets).
View our rate sheet for pricing not based on conduit spreads.
Fico requirement =660+ |
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• Property Types: Multifamily & Mixed-Use <25% Commercial
Loan amounts $2,000,000 - $50,000,000 |
Bridge Loan Program (WCB9 - 03/26/08)
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DSCR: down to .25x
Fico requirement: 600+
Term: 1-3 years
Lending Area: Continental United States
Interest Rate: 10.00% - 13.00%
Amortization: Interest Only
Loan to Value: Up to 75%
Origination Fee: 3-4% taken at closing from loan proceeds
Closing Time: As quickly as 7-14 business days
Acceptable Property Types: Multifamily, Mixed-Use, Office, Retail, Self- Storage, Warehouse/Flex, Mobile Home Park, Branded Gas Stations and Flagged Hotels
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For more information email me at:
Eli@AbsoluteFloridaMortgage.com
When you succeed I succeed
and that is my #1 priority!
Your referrals are the heart of my business!
Eli Magen is your mortgage consultant for life.
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