The commercial loan programs defined:
Fixed Rate Loan:
A loan in which the interest rate and payments remain the same for the life of the loan.
Variable Rate Loan/Adjustable rate loan:
A loan which allows the Lender to adjust the interest rate in accordance with a specified index periodically and as agreed to at the inception of the loan.
Interim Loan:
Financing used from the beginning of a project to the closing of a permanent loan. Usually a construction or development loan.
Mezzanine and Cross-Collateralization:
Financing that covers the gap between senior financing and the borrower's equity. Loans secured by commercial properties or other hard assets, providing funds for the expansion or acquisition of businesses, including those with limited operating histories.
Bankruptcies and Foreclosures:
Debtor-in-possession financing for companies facing bankruptcy and emergency loans for owners with commercial property in foreclosure.
Construction and New Construction Loans:
Bridge loans for new development and construction and home improvement financing.
Refinance Loan:
A loan that replaces existing financing on a property.
Back to Home Page
"Typical" Loan Programs Available for Qualified Properties here are three different scenarios.
Hotel Finance Program
This program is for the refinance or purchase of Hotel properties. Each property should have a stable or increasing level of occupancy for 2 years based on consistency throughout the 2 year period. The loan type would be 7, 10, 15, and 20 year maturity, fixed or floated rates loan rates. Loans are typically amortized over 20 and25 years depending on the age of the property. Preferred loan amount would be over $750,000 and the rates would be typically fixed at the time of closing based on loan-to-value, debt service coverage, property quality.
Shopping Center Finance Program
This program is for the refinance or purchase of shopping center properties. Typically, the centers would have three years of stable or improving occupancy and operating performance and all centers should have a broad mix of tenants providing everyday products and services. The loan type would be either 7, 10, 15, 20 and 25-year maturity, fixed rate loans. The preferred loan size would be over $1 million, and the rates would be based on loan-to-value, debt service coverage, property quality, which will be fixed at time of closing.
Multifamily Finance Program
This program is for the re-finance or purchase of multi-family properties, current rents and occupancy would support the underwriting of the loan. The type of loan would be 7, 10, 15, 20 and 25-year maturity, fixed or floating rate. Bridge and mezzanine loans can be available depending on loan size. The preferred loan size would be over $750,000, and the rates would be based on value, debt-service and property condition which would be fixed at the time of closing.
Back to Home Page
