Commercial Property products brought to you by Massey Kouhssari

Post date: Feb 24, 2014 10:9:59 PM

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.

949-244-1880

Massey Kouhssari

BankerBroker.com

APARTMENT LOANS, MULTI-FAMILY

FINANCING & MORTGAGE

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%

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.

Eligible Properties:

- Stabilized properties with at least 5 units in major MSA’s* and proven management.
- Up to 40% commercial component permitted; student and senior housing eligible for financing.

Loan Amounts:

- $250,000 - $10,000,000

Term & Amortization:

- Adjustable, 3, 5, 7, and 10 year hybrid loans amortized out for 30 years.

Prepayment Penalty:

- Typically step-down prepayment penalties during the fixed rate portion of the loan.

Loan to Value Ratio:

- Maximum LTV 75% depending on the quality and program.

Debt Coverage Ratio:

- Minimum 1.25:1 DCR

Credit Score:

- Minimum middle credit score 680

Application Fee:

- Generally $3,500, which will be applied towards third party costs to include but not limited to Credit Report, Appraisal Report, Property Inspection.

Title/Escrow:

- Preferred carriers offer discounts to our clients.

Pricing:

- Interest rates quoted daily. Please contact an Apartment Bank/BofI Federal Bank Representative for pricing parameters.

Borrower:

- Individuals, Trusts, Limit Liability Companies, Limited Partnerships, COPs and Corporations.

Territory:

- Nationwide MSA’s* with minimum population area of 100,000.

Loan Features:

- Recourse Lender
- Assumable
- Secondary financing may be allowed on purchase transactions
- Layered risk-based pricing to ensure lowest rates
- Several prepayment options keep you in control