For The Savvy
Tips For Your Savvy Borrowers...
Help you real estate savvy borrowers can take advantage of low
housing prices. We have the ability to finance up to 3 properties per
borrower, and use rental income for subject property!
· 10 Financed Properties
BankerBroker.com will allow a borrower to finance up to 3 properties.
For example, if you own 15 properties but only 7 are financed, we will
allow you to finance another 3 properties.
· No Rapid Acquisition
As long as you qualify we will allow for the purchase of up to 3 properties
at one time!
· Rental Income
If you have 5 or more financed properties and have a two-year landlord
history, BankerBroker will allow for rental income to be used on the subject
· Let your Friends know of
Commercial Property Loans
This product comes in two flavors; investor and owner-occupied properties. Both are being scrutinized quite heavily so prepare yourself for a full documentation loan. Meaning, three years complete tax returns must be submitted.
For investor properties the maximum loan to value (LTV) that a bank will finance is somewhere between 65% to 75% LTV.
Some banks may only go 50% for retail properties.
Interest rates will vary depending on the strength of the borrower. The property must have at least a 1.25 to 1.35 Debt To Service Coverage Ratio as well.
For owner-occupied properties, we can go a bit higher on the LTV, up to 90% financing in some cases because we add in an SBA component. It's not as scary as it seems. But be prepared to do some paperwork.
Contact us today to regarding your industrial, office or retail property.
APARTMENT LOANS, MULTI-FAMILY
FINANCING & MORTGAGE
Apartment owners with a minimum of 5 units will find a wide array of financing options to meet their individual financing needs including assorted fix rate hybrid loans and prepayment options. Purchase refinance and cash out refinance are also available.
Term & Amortization:
Loan to Value Ratio:
Debt Coverage Ratio:
Commercial Property Rate Examples
Rate quotes below are an estimate using recent market pricing parameters and generic risk and collateral assumptions and will vary with from borrower to borrower
3-year fixed rate: 4.50%
5-year fixed rate: 4.75%
7-year fixed rate: 5.85%
Unsecured line of credit – variable rate: 3.73%
Stated Income Apartment Loan
BankerBroker.com has the of the best Stated income loans products available in the commercial mortgage marketplace.
Apartment or Multi Family Refinances:
- NO Tax returns or Bank Statements are needed.
- Zero Cost for the appraisal, a savings in the area of $1,500 to $2,000
- Zero Cost for the Escrow and Title fees (Refinance Only). The savings on these two fees alone, depending on your loan amount, can easily save you another $1,000 to $2,000 or more!
This is one of the easiest loans to obtain so contact us now while this apartment loan product is being offered.
Interest rates fluctuate daily
Rates as of 2/14/2014
Adjustable Rate Loan: 2.99% - 3.25APR
3 Year Fixed Program: 3.42% - 3.62APR
5 Year Fixed Program: 3.88% - 3.95APR
7 Year Fixed Program: 4.36% - 4.53APR
10 Year Fixed Program from 5.21% - 5.51APR
All have 30 year amortization.
Debt to Service Coverage Ratio only 1.15 based on 4.25% Qualifying Rate.
Minimum middle FICO score of 680+.
Minimum loan amount of $500K.
Loans between $500K to $750K add 20 basis points to the rate. Loans between $750K and $1MM, add 10 basis points to the rate. Max LTV 75%
Borrower liquidity to equal 6 months Principal and interest payments on all Real Estate.
Apartment buildings are generally distinguished by factors of age, size and location.
These types of facilities are large apartment complexes in the most favorable locations featuring many amenities. They are also the most favored of the investment properties. The continuous demand to rent or purchase living space makes large complex apartments a very safe investment once the units have reached a certain level of occupancy.
Most apartment loans of $3 million and higher are sold by the lender. However, some lenders are conduits or lenders who collect loans for a pool and then sell financial interests to institutional investors in those pools.
To achieve the low rates quoted for these loans, lenders underwrite them in narrow bands – or tiers – of risk. Rates are then quoted for each tier. As the risk increases (due to factors of occupancy, market, age and confidence in the borrower), the rate increases. Everyone quotes the best rate, but few properties qualify.
Fortunately, the difference between rates is only a few basis points. One percentage point equals 100 basis points. Rates vary according to term and amortization, but the general rule is: the longer the term, the higher the rate. A fixed-rate loan can be obtained for 30 years, but most are 10-year loans where the rate is lowest.
Not to be outdone, the Federal Housing Administration (FHA) also offers guarantees to lenders for qualifying apartments. These loans usually offer low rates and longer terms – some as long as 40 years for a fixed-rate loan. FHA-guaranteed loans also offer very high loan-to-value as opposed to loans sold to conduits. Although advertised differently, most conduit loans are 70% of the value. FHA loans, however, usually fund up to 85% (and sometimes higher) of the value of the facility.
One of the most thwarting features of conduit or FHA loans is the limitation on secondary financing. Mezzanine loans are used to bridge this gap between equity and the primary loan. They are usually for 10 years or less and cost twice the amount in interest of the permanent loan. In a way, they are like equity because they have no lien on the property. Almost all apartment acquisitions consider mezzanine financing because of the low loan-to-values of conduit loans and the prohibition against secondary liens on the property.
This class of apartments can and does include all of the former Class A apartments plus those that were never defined as Class A because of size and market location. These complexes are well maintained and have a history of performance catering to the middle class apartment dweller.
In recent years, demand for this product has provided non-recourse financing at pricing rivaling the middle tiers of the risk scale for Class A apartments. Very attractive 10-year financing and FHA-guaranteed financing is also available for these units. FHA financing, while very inexpensive on an annual percentage rate basis because of the long term, has a transaction cost threshold that is not beneficial when the number of units decline below a 100.
Most of these loans are made under secondary market criteria. The major banks, life companies and conduits all provide capital for this market, and some of these sources will accept loans less than $2 million at rates designed for larger loans. If the complex qualifies, this can be a real bonus to the owner.
Modest-sized apartment complexes number 15 to 50 units, characterized by a lack of amenities and a mid to lower range of rent. These complexes are identified by the size of their loans, which are usually valued no less than $500,000 and no more than $2.5 million. Because this size is uneconomical to construct in today's environment, units this size are older and do not command the highest incomes.
Nevertheless, there are a lot of complexes this size, and there are many loan programs available to them. If the loan is over $400,000, there is even non-recourse financing. Every loan will require due diligence paid for by the borrower in the form of a Phase I environmental report and appraisal. Some investors have special programs to cap the closing costs, but that feature is also reflected in a higher rate. Those with a lower rate often have higher costs.
The recourse loans available for the acquisition and refinance of these facilities often reflect an 80% loan-to-value with an adjustable feature. There is also long-term fixed-rate financing available for these units. For every $500,000 in loan amount, the number of loans available increases and the interest rates decrease.
Small Apartment Complexes
These facilities range in size from five units to 14 units. The number of units is indicative of the value and probable loan size. Many modest apartment lenders do not have programs for this size project; however, there are national specialty lenders who do seek these loans. Local banking institutions also are especially active in this market. There is no non-recourse financing unless it is located in an exceptionally high-value area, whereby the loan amount will be similar to that of modest-size apartment communities.
There is a significant difference in payment terms available to these units. Local banks feature a low fee basis and limited third party reports, but these savings are offset by adjustable rate loan programs amortized over a 15- to 20-year period. National lenders offer a 30-year loan that significantly lowers the debt service to the borrower. To be competitive on the fee size, these institutions are now offering on par loans and limiting the third party costs by employing their own reviewers.
Apartment Construction Financing
There are special types of construction financing available to apartments in addition to the regular apartment loan. This loan is oriented to the Class A and B apartment communities. It features 90% financing, non-recourse and a fixed rate. The fees for the service are higher than permanent financing but cover both stages of the financing because there is only one closing. This product is thought to contain the most value of any on the market, as its terms are flexible and its overall cost significantly less than any other program.
Smaller apartment financing loans are also available with lower loan-to-values but do permit seller financing of the land if subordinated. These loans are recourse throughout the construction period, and they require the borrower to invest his equity at the time of the first draw in cash or in kind. If the borrower owns the land and it is equal in value to 80% of the total cost, he can use the land as the equity injection instead of cash.
O/O Non Prime Lending Without the Hassle.
All Broker/Lender fee's can be financed into the loan on Refinances, Owner and Non Owner Occupied.
No Borrower loan Counseling needed.
Rates as low as 3.95% APR
Bank Statement Program For Self Employed & 1099 Borrowers
Personal statements qualify with 100% of deposits - ignore the withdrawals.
Business statements qualify with 50% of deposits - ignore the withdrawals.
600 credit score for O/O - 500 credit score for N/O - 50% DTI
Short Sale / Foreclosure / BK Programs
1 day out of Short Sale 75% - 1 yr. out 80%
Foreclosure / BK settled OK!
2:1 Buy down & Buy up Available
No Pre-Pay Penalties
$1mil Loan amounts available
Cash out O/O - 500 FICO - $750k
Purchase or Refi O/O 500 FICO
Gift Funds For Purchase Money
Additional Programs Notes:
Charge up to 5% Origination!
No PrePay Penalties Period!
30yr amortization, no balloons.
Make sense manual underwriting.
No reserves needed.
Use your existing appraisal up to 120 days.
BANKERBROKER.COM LENDING PARAMETERS OVERVIEW:
Almost ANY Property Type: Non-Owner Occupied Only
- Residential – SFR / 2-4 Units / Condo / PUD
- Multi-Family – Apartments (5+ Units)
- Commercial – Retail, Office & Mixed-Use
- Land & Lots (In-fill)
- Up to 75% of purchase price for Rehab Fix & Flips!
- Up to 65% LTV for Purchase Loans
- Up to 60% LTV for Refinances
- Loan Size: $35,000 & Up.
- 1sts, 2nds and 3rds.
- No PPP, Lockout or Exit Fees
- No Commitment/Upfront Fees
- No Min. FICO Score Required
Broad Range of Loan Programs:
- Fix & Flip [Rehab] 65% ARV
- Buy & Hold
- Broken Construction
- Probate Estate & Trust-owned Property
- Bridge, Owner-user, Communities, Factory Built
View Recent Closings | Testimonials
Common Sense Lending is Back®
Call Massey Kouhssari
A Sampling of Loans We Closed:
City: Northridge, CA 91362
Transaction Type: Purchase, Short Sale
Purpose: Fix & Flip
Property Type: SFR – Detached
Lien Position: 1st
Loan to Value: 62%
Loan Amount: $627,500.00
Note Rate: 12.000%
Loan Term: 1 Year
City: Santa Paula, CA 93060
Transaction Type: Refinance, Cash-out
Purpose: Business Purpose: Fruit & Nut Ranch
Property Type: Land: 67 Acre Working Orchard
Lien Position: 1st
Loan Amount: $450,000.00
Note Rate: 9.25%
Loan Term: 2 Years
City: Northridge, CA 91722
Transaction Type: Refinance - Cash-out
Purpose: Real Estate Investment Capital
Property Type: SFR - Commercially Zoned. Owner-user Office Building
Lien Position: 1st
Loan to Value: 60%
Loan Amount: $300,000.00
Note Rate: 8.999%
Loan Term: 4 Years
City: Glendale, CA 91201
Transaction Type: Refinance - R&T
Purpose: Retire Existing Ballooning Note
Property Type: Multi Family Residence:
Five (5) Units
Lien Position: 1st
Loan to Value: 36%
Loan Amount: $350,000.00
Note Rate: 10.5%
Loan Term: 2 Years
$1,000,000 loan amounts are here!!
1 day out of Short Sale OK!
500 fico OK!
Bank Statements for income OK!
Bankruptcy & Foreclosure 1 yr. out OK!
- Owner Occ. only
- 70% LTV to $1mil. 80% LTV to $750K
- 50% DTI
- Bank statements for self employed or 1099 only
Add.'l Program Highlights:
- Cash Out O/O w/500 Fico to $750K
- Short Sale >1yr 80% LTV!
- No PrePay Penalties Period!
- 30yr amortization, no balloons
If you’re not aware, the Tax Exemption that saved people on huge tax consequences due to a short sale or foreclosure is gone. This could definitely put a slow down on the real estate market. The lack of this exemption could be the very thing that stops someone from going through with that short sale. These taxes can be devastating to people.
Consider it. If you do a short sale and you’re “short” $100,000 and you’re in a 30% tax bracket, there’s a nice $30,000 bill you weren’t prepared for. Yikes. Yeah, I’d be concerned if I was trying to sell right now and I didn’t have the equity to cover all my costs. So what do we do? Well, they can always reinstate the Act. They can even make it retroactive. But as of yet, there doesn’t seem to be anything happening.
So we’re recommending that you and your clients get involved and send a message up the Hill. Find your Congress person and send them a little email telling them to reinstate the Act and make it retroactive. If enough people do it, it will probably work. With elections coming around it will probably be something one of them will spearhead and get moving. Once it’s done we can get those short sales moving again.
You can CLICK HERE to find your Congressperson.
Brought to you by http://thenationalrealestatepost.com/
- Buy, Repair and Flip
- Investment Property Only
- LTV up to 80% and 90% on case by case basis
- Up to $1,000,000 loan amount
- 12 month Interest Only loan
- Fund in 7 - 14 days
Your Direct Private Funds Source
NON-OWNER PURCHASE MONEY:
Foreclosures, Short Sales, Rehabs & Flips WELCOME! (no double escrows)
LTVs up to 75% based on Borrower Strength & Property Location & Condition
Loan Amounts up to $1.5 Million! (subject to underwriting rates, terms & fees )
No Income, No Credit, No Problem! Close in 7 days or less.
1 Day in the property using Sales Price for Value.
CURRENT VALUE after just 90 DAYS!
Cash-Out to Buy More Properties OR for ANY REASON!
LTVs up to 90% based on Borrower Strength & Property Location & Condition.
Loan Amounts up to $1 Million! (subject to EWL rates, terms & fees listed below)
No Income, No Credit, No Problem! Close in 7 days or less.
BPO / Drive-By Appraisals accepted up to 50% LTV.
OWNER OCCUPIED CASH-OUT case-by-case:
Cash-Out for Business or Investment Use.
Properties held in Corporations or LLCs preferred.
(subject to EWL rates, terms & fees listed below)
BankerBroker.com is a Private Funds Direct Investor with unlimited funds for less than perfect borrower and California property niches.
We are the decision makers and lend our OWN money, -avoid funding delays with other indirect lenders.
Partnering with BankerBroker.com means SAVING DECLINES
and Saying “YES” to More Clients More Often…
Borrower & Property Program Niches:
- True Stated Income – Self Employed & Wage Earners
- Below Avg Credit / No Fico / No Credit OK
- Bankruptcy / Foreclosure / NOD / Short sale OK
- No Assets or Reserves Required
- N/O, Foreign Nationals, LLCs & Foreign Corporations
- O/O Cash-Out for Business Use
- Cash-Out 1 Day in the prop / Current Value in Just 90 Days
- Condos unacceptable to Fannie, Freddie & FHA
- Unique Props / Leased Land / Multiple dwellings on one parcel
- Purchase / Refi / Cash-Out / Bridge / Construction / Rehab / Takeout
- Residential / Commercial / Industrial / Mixed Use / Rural / Ag
- 1st 2nd & 3rd TDs from $50,000. up to $1,500,000.
- 50% to 90% LTVs / CLTVs considered case by case to 90%
- Risk Based note rates range 7.99% - 12.99APR%
- 1-5 year terms / Interest Only Available
- 1 Yr, 6 Mo & No Pre Pay Penalty Options
- Broker Matching Fees Protected in Escrow
- California Properties Only
- Next Day Approvals / Fast, Fast, 7 day closings
- VIRTUALLY EVERYTHING OK BELOW 50% LTV!!!
**Loan Pricing and Terms are always case-by-case based upon borrower strength and subject property location & condition.
Call Massey Kouhssari
with ALL Your Loan
Getting a CHFA MCC is like getting up to a 50 percent discount off your mortgage interest rate.
Here is how this works:
- Pair the CHFA MCC with your CHFA First Mortgage Loan
- Reduce the amount of federal taxes you owe by claiming 20, 30, or 50 percent* of your annual mortgage interest as a tax credit on your tax return.
- Claim the remaining interest as a home mortgage interest deduction.
- The result: You pay lower taxes and have more money to put back into your home or into savings!
|*The Mortgage Credit Rate is based on your loan amount.|
- 20% MCC for loans of $150,001 or greater – no cap
- 30% MCC for loans of $100,001 to 150,000 – $2,000/year cap
- 50% MCC for loans of $100,000 or less - $2,000/year cap
savings example (Effective Rate)Click table for a larger image. For example, if you are getting a loan for $250,000, the amount of interest you will pay in one full year is $8,750. (Loan amount X interest rate = annual interest). With an MCC credit rate of 20%, you would be eligible for a tax credit on your taxes of $1,750. (Annual interest X MCC credit rate = tax credit). The MCC savings will reduce your effective interest rate to 2.42%, saving you $145.83 a month!
how do you qualify?
Call us at 949-244-1880 & Tell your BankerBroker "I want my MCC" to get the savings started!
- First time homebuyers
- Eligible veterans
- Non-first time homebuyers purchasing in targeted areas
- CHFA–approved homebuyer education required
- Mid credit score of 620
- Must live in the home as a primary residence
- Income and purchase price limits (Targeted areas have different income and purchase price limits and no first time homebuyer requirements. These areas are determined by census tract.)
chfa mcc explained
Tax laws and regulations change frequently, and their application can vary widely based on the specific facts and circumstances involved. You are responsible for consulting with your own professional tax advisors concerning specific tax circumstances for your business. BankerBroker disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. This material is for informational purposes only & by no means to be taken as tax advice or tax consultation.
If you have questions regarding accounting issues specifically related to your industry or your business circumstances, you should consult with your own professional tax advisor, accountant, attorney, industry expert or professional association.