Owner/ User Commercial Loan Program

Loan Amounts$500,000 - $5,000,000
Eligible Property TypesMulti-tenant and single-tenant Office, Industrial, Retail(anchored and unanchored), Office Condo's, Owner/User, and Special Purpose.
Ineligible Property TypesMultifamily, Mobile Home Parks, Gas Stations, Bed & Breakfasts, Day Care, Car Wash, Schools, and Convenience Stores. 
Term

20-25 year terms

  • Quarterly ARM - resets quarterly to start margin plus current index for life of loan
  • 1, 3, 5 year Fixed - loan resets every 1, 3, 5 yrs. respectively at start margin plus current index for life of loan
  • 7 year Fixed - balloon at end of fixed rate period
Amortization20-25 Years depending on age of subject property.
Prepay PenaltyStep-down
Max LTV/CLTV65% - 75% LTV for multi-use, 65% LTV for special purpose.
Min DSCR1.25X minimum.
RecourseTypically Full Recourse.
Min OccupancyProperties should demonstrate stable occupancy, preferably 90%.
EscrowsTax Impounds are required.
Replacement Reserve EscrowsTypically, waived.
Rate LockCan be locked for 60 days at a time of final commitment
Good Faith Deposit

For loans < $2,000,000 - $5,000 collected at Final Commitment
For loans > $2,000,000 - $7500 collected at Final Commitment
All Good Faith Deposits are credited back to borrower at closing

Fees$6,000 fee for 3rd party reports and processing (collected at acceptance of approval). $1,300 for lender legal, admin, and docs (collected at closing)
SeasoningThe original purchase price (plus applicable costs / cap ex) for 24 months following purchase for the underwritten value
MarketsTypically, 50,000 or greater MSA.
Borrower Business

Must be in business at least 3 years

Borrower CreditMinimum 650; with no mortgage lates, public records; case-by-case basis.
Owner/User

Not available at this time (see owner occupied program)

Docs Needed for Application

Property rent roll, proeprty historical operating statemtns including Y.T.D, Key Principal Financial Statements and credt report, REO Schedule, and Property photographs.
For Owner/User: last  three yrs. business, personal and proeprty entity (if applicable) tax returns plus YTD operating statement for business.

 Assumability Loan is assumable, subject to lender approval and 1% fee.
 Rental Income 70% of the property's tenant rental income can be counted as additional when calculating DSCR
 Required Draw40% DTI imputed in GDSCR calculation as Officer Compensation (ie: if borrowers annual payments (car, personal, income taxes, etc.) are $50,000 then the required draw will be $125,000 when calculating GDSCR ($50,000/ 0.4 = $125,000).
 SBA SBA 7a & 504b programs available for qualifying borrowers

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