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Mortgage Blog

Top tips for getting a commercial loan

October 20th, 2016 8:15 AM by Michael and Jill Kohler


Commercial Loan

Getting a commercial loan isn't easy, but you can start the process off by reading thru these top tips.  

1)  Have a business plan, with forecasts, projections, financial records and statements.
2)   Put your own money down.  You'll need a substantial deposit, at least 25%, sometime 30-35% depending on the type of commercial building it is.    
3)  Apply as soon as you can.  It can take 3 months to go thru the process.
4)  Deal with a commercial mortgage broker.  They have many lenders they deal with.  They will find the best lender for your scenario.
5)  Never order your own appraisal.  The lender will order it directly thru their own channels.  



Freddie Mac Multifamily Small Balance Loan Program

Freddie Mac multifamily financing (loans above $5 million)

Fannie Mae’s Small Apartment Loan program

Freddie Mac Hybrid Small Balance Apartment Loan program ($1MM-$5MM).

Freddie Mac Small Balance Apartment Loan Program Features

· Non-recourse

· No yield maintenance - step down prepay

· Converts to ARM at end of fixed term

· Highly competitive interest rates

· Up to 80% LTV

· 30 year amortization

· Full term interest only available

· No replacement reserves

· No underwriting floor rate maximizes proceeds

· Tax returns not required

· Assumable

· Cash out refinances

Fannie Mae Multifamily Loans

With industry low interest rates, customized terms and certainty of execution, the Fannie Mae DUS Multifamily Loan platform is one of the single largest sources of capital to the multifamily housing market. Hedge interest rate risk with fixed rate terms up to 30 years, maximize cash flow with low rates and interest only payment options, and maximize leverage with up to 80% LTV.

Features:

· Non-recourse / Assumable

· Up to 30 year fixed interest rates

· Up to 80% LTV purchase and refinance

MultiFamily Property


HUD FHA Multifamily and Apartment Building Loans

HUD FHA apartment loans are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms.

· Up to 35 and 40 year fixed rate terms

· Leverage up to 83% (90% for construction)

· Non-recourse / assumable

· No population or geographic restrictions

· Market rate or affordable

· Construction or permanent financing

Stated Income Loans

The stated income apartment loan program does not require personal or business tax returns. Personal financial statements and three years of property operating statements are required to verify ability to service the debt.

· Tax returns not required

· No personal or global debt DSCR

· Property operating statements required

· Credit and financial capacity requirements

Bridge Apartment Loans

Short term or bridge apartment loans are available for the renovation or repositioning of multifamily properties. Program can also be used for stabilized properties requiring a quick close or waiting for a permanent close.

· $5 million minimum

· Strong experienced sponsorship req.

· Up to 80% loan-to-cost

· Floating rate over LIBOR

 

Apartment loan refinance and purchase availability -- including LTV, DSCR, and loan size -- may vary depending on property location, economic conditions, exposure, and other variables that may negatively influence risk. Loan programs and program guidelines (including, without limit, fees, rates and features) are subject to change. Information provided is not an offer to make a loan and should be used for informational purposes only.


Freddie Mac Multifamily Small Balance Loan Program

Freddie Mac multifamily financing (loans above $5 million)

Fannie Mae’s Small Apartment Loan program

Freddie Mac Hybrid Small Balance Apartment Loan program ($1MM-$5MM).

Freddie Mac Small Balance Apartment Loan Program Features

· Non-recourse

· No yield maintenance - step down prepay

· Converts to ARM at end of fixed term

· Highly competitive interest rates

· Up to 80% LTV

· 30 year amortization

· Full term interest only available

· No replacement reserves

· No underwriting floor rate maximizes proceeds

· Tax returns not required

· Assumable

· Cash out refinances

Fannie Mae Multifamily Loans

With industry low interest rates, customized terms and certainty of execution, the Fannie Mae DUS Multifamily Loan platform is one of the single largest sources of capital to the multifamily housing market. Hedge interest rate risk with fixed rate terms up to 30 years, maximize cash flow with low rates and interest only payment options, and maximize leverage with up to 80% LTV.

Features:

· Non-recourse / Assumable

· Up to 30 year fixed interest rates

· Up to 80% LTV purchase and refinance

MultiFamily Property


HUD FHA Multifamily and Apartment Building Loans

HUD FHA apartment loans are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms.

· Up to 35 and 40 year fixed rate terms

· Leverage up to 83% (90% for construction)

· Non-recourse / assumable

· No population or geographic restrictions

· Market rate or affordable

· Construction or permanent financing

Stated Income Loans

The stated income apartment loan program does not require personal or business tax returns. Personal financial statements and three years of property operating statements are required to verify ability to service the debt.

· Tax returns not required

· No personal or global debt DSCR

· Property operating statements required

· Credit and financial capacity requirements

Bridge Apartment Loans

Short term or bridge apartment loans are available for the renovation or repositioning of multifamily properties. Program can also be used for stabilized properties requiring a quick close or waiting for a permanent close.

· $5 million minimum

· Strong experienced sponsorship req.

· Up to 80% loan-to-cost

· Floating rate over LIBOR

 

Apartment loan refinance and purchase availability -- including LTV, DSCR, and loan size -- may vary depending on property location, economic conditions, exposure, and other variables that may negatively influence risk. Loan programs and program guidelines (including, without limit, fees, rates and features) are subject to change. Information provided is not an offer to make a loan and should be used for informational purposes only.


Freddie Mac Multifamily Small Balance Loan Program

Freddie Mac multifamily financing (loans above $5 million)

Fannie Mae’s Small Apartment Loan program

Freddie Mac Hybrid Small Balance Apartment Loan program ($1MM-$5MM).

Freddie Mac Small Balance Apartment Loan Program Features

· Non-recourse

· No yield maintenance - step down prepay

· Converts to ARM at end of fixed term

· Highly competitive interest rates

· Up to 80% LTV

· 30 year amortization

· Full term interest only available

· No replacement reserves

· No underwriting floor rate maximizes proceeds

· Tax returns not required

· Assumable

· Cash out refinances

Fannie Mae Multifamily Loans

With industry low interest rates, customized terms and certainty of execution, the Fannie Mae DUS Multifamily Loan platform is one of the single largest sources of capital to the multifamily housing market. Hedge interest rate risk with fixed rate terms up to 30 years, maximize cash flow with low rates and interest only payment options, and maximize leverage with up to 80% LTV.

Features:

· Non-recourse / Assumable

· Up to 30 year fixed interest rates

· Up to 80% LTV purchase and refinance

MultiFamily Property


HUD FHA Multifamily and Apartment Building Loans

HUD FHA apartment loans are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms.

· Up to 35 and 40 year fixed rate terms

· Leverage up to 83% (90% for construction)

· Non-recourse / assumable

· No population or geographic restrictions

· Market rate or affordable

· Construction or permanent financing

Stated Income Loans

The stated income apartment loan program does not require personal or business tax returns. Personal financial statements and three years of property operating statements are required to verify ability to service the debt.

· Tax returns not required

· No personal or global debt DSCR

· Property operating statements required

· Credit and financial capacity requirements

Bridge Apartment Loans

Short term or bridge apartment loans are available for the renovation or repositioning of multifamily properties. Program can also be used for stabilized properties requiring a quick close or waiting for a permanent close.

· $5 million minimum

· Strong experienced sponsorship req.

· Up to 80% loan-to-cost

· Floating rate over LIBOR

 

Apartment loan refinance and purchase availability -- including LTV, DSCR, and loan size -- may vary depending on property location, economic conditions, exposure, and other variables that may negatively influence risk. Loan programs and program guidelines (including, without limit, fees, rates and features) are subject to change. Information provided is not an offer to make a loan and should be used for informational purposes only.


    Before applying for a Pa mortgage loan, Do Not make Major Purchases of any kind or take on any unnecessary debt if you can avoid it. Reason being that bills for appliances, jewelry, ,furniture, vacations, cars orany of these expenses that may show up on a credit report can affect your DTI. (debt ratio) A 0% interest free loan for a year on some appliances from Home Depot still may need to have a monthly figure attached to it on your credit bureau, often 5% of total balance. That seemingly insignificant amount could be the difference on what rate your lender is able to approve you at, or worse yet, whether you get approved for the mortgage loan at all. Better safe then sorry. Get the loan then buy the appliances (or whatever else) later. You'll be glad you did. 

    Get your FREE Quote Now!


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Posted by Michael and Jill Kohler on October 20th, 2016 8:15 AM

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