| Objective |
Provide permanent financing
on owner-occupied property for successful cash-flowing businesses where
the owners have good credit ratings. |
| Eligible
locations: |
Continental US |
| Eligible
properties: |
Owner-occupied (51%
or more), single or multi-tenant, commercial real estate
properties. Industrial, warehouse, retail, office, mixed use, special purpose and more. |
| Business type: |
Established,
cash-flowing business. Start-up businesses are not eligible. |
| Occupancy: |
Multi-tenant is permitted,
but owner must occupy at least 51% of the property |
| Eligible
transactions: |
Acquisition or refinance |
| Transaction
size: |
$500,000 to $8 million
|
| Purchase - LTV/LTC: |
| FICO |
LTV/LTC |
| 620+ |
75% |
| Higher LTV's with additional pledged collateral |
90% |
| > 619 |
Not eligible |
|
| Refinance - LTV |
Using "As-Is" appraised market value:
| FICO |
LTV |
| 620+ |
75% cash-out case by case |
|
| LTV/LTC: |
The lesser of : “As Is” appraised real estate value or actual purchase price, based on the credit of the principal: |
| Adjustable rates: |
| Index |
Adjustments |
Term |
Amort |
| Prime |
Quarterly |
5-10-25 yrs |
25 yrs |
|
| Prepayment Penalty |
|
| Security: |
First mortgage lien
on the subject property, assignment of all permits and approvals, assignment
of leases. No security interest in receivables, inventory, fixtures, equipment, furnishings or other
collateral. |
| Ownership: |
Single asset, special
purpose entity. |
| Application
Fee: |
Fee of $1,500 to $2,000
is due with the signed Application, depending on property location and transaction size. |
| Origination
Fee: |
1% to 3% payable at Closing |
| Prepayment: |
Up to 20% of principal balance may be repaid annually without penalty. |
| Commitment Deposit |
½ of 1% of loan amount or $10,000, payable upon acceptance of Loan Commitment depending on loan program for 3rd party costs, legal and closing. Balance applied towards Origination Fee or refunded at closing. |
| DSC: |
Minimum of 1.25 - Net business income (EBITDA) plus rents from other leased spaces, if any. |
| Recourse: |
Full Recourse. |
|
Secondary lien on additional collateral may be required for credit enhancement |
| Escrows: |
Real estate taxes,
hazard insurance. Optional |
| Second Mortgage:
|
Permitted with permission
of Lender based on consolidated DSC (excluding loans over 80%). |
| Third
Party Reports: |
Appraisal, Phase
I environmental and others if required, ordered by Lender at
expense of Borrower. |
| Closing
Time: |
30 – 45 days
from completed Application. |
