| Loan Type | Conventional, Full Doc |
| Min Loan | $250,000 |
| Max Loan | $3,000,000 – $3,500,000 (#1) |
| LTV | 65% LTV – 90% CLTV (#2) |
| Interest Rate | 6.00 – 7.50% (#3) |
| Term | Fixed, 5 years; or, Adjustable, 20 – 25 years (#3) |
| Amortization | 20 – 25 years (#4) |
| DSCR | 1.25 |
| Credit Score | 650 |
| PrePay Penalty? | 5% @ 5 years (#5) |
| Lock Out? | No |
| Interest Guaranty? | No |
| Exit fee? | No |
| Balloon? | No |
| Personal Guarantee? | Yes |
| Documents Required | Copy of Purchase Contract & Earnest Money Check (if a purchase), Credit Report (less than 60-days old), Personal Financial Statement (less than 60-days old), last 2 years of Personal and Business Tax Returns, 2 years of Business Financials (Income/Expense Operating Statement & P&L Statement/Balance Sheet), Year-to-Date Business Financials, Appraisal, Environmental Report (if necessary, depending on property type & history), Rent Roll/Leases, Digital Pictures |
| Closing Time | 45 days |
| Lender Fee? | Typically, up to 1 point (depending on deal, lender – will be specified in quote) |
| Broker Fee? | Typically, up to 1 point (depending on deal, lender – will be specified in quote) (#7) |
| Eligible Properties | Multi-Use (#6), Limited-Use (#7), Hospitality (#8) |
| Eligible States | All |
| Other | 1) Interest Only option available (I/O payments can be made for up to 3 years.); 2) Seller-held 2nd Mortgage allowed on Purchases only (25% LTV for Multi-Use and Limited-Use Properties; 20% LTV for Hospitality (Motels/Hotel) Properties) – See Note #2 ); 3) Adjustable Rate can be converted to (5-year) Fixed Rate for a $500 fee |
| Note #1 | Multi-use Properties: $3,500,000; Limited-Use and Hospitality Properties: $3,000,000 (See Notes #6 – #8) |
| Note #2 | Purchases: 65% LTV 1st mortgage + seller-held, 20% LTV or 25% LTV mortgage = 85% – 90% CLTV (See ‘Other’, above); Refinances (Rate & Term, Cash-Out): 65% LTV (No seller-held 2nd mortgages allowed) |
| Note #3 | Fixed Rate: (5-years) 7.25% – 7.50% (after 5 years, becomes adjustable); Adjustable Rate: 6.00% – 6.125% (Prime + 2 to 3 points, depending on lender/loan program; Periodic cap: 0.25% – 1.00%, Lifetime Cap: 2.00%; Conversion: after 1 year, can be converted to 5-year fixed rate, for a $500 fee) |
| Note #4 | 20 – 25 year amortization, depending on type of property, the age of the property and the property’s remaining economic life, based on the appraisal |
| Note #5 | Whether PP Penalty is flat or declining, or can be bought down, depends on lending source and specifics of deal; Please see ‘PrePayment Penalty: Subsidy’ |
| Note #6 | Multi-Use Properties: Commercial, Retail, Offices (Buildings or Condos), Mixed Retail with Offices, Mixed-Use (Commercial/Residential), Light Industry, Light Manufacturing, Warehouse, |
| Note #7 | Limited-Use Properties: Assisted Living Facilities, Automobile Dealerships, Automotive Service & Repair, Bowling Alleys, Day Care, Funeral Homes, Grocery Stores, Restaurants, Properties with Excess Land, RV Parks |
| Note #8 | Hospitality (Motel/Hotel) Properties: Flagged or Non-flagged, Interior or Exterior Corridors, 125 Units (“Doors”) or less, Newer Properties (no more than 20 years old ) |