CRE Small Balance Financing

Loan Terms

Loan Amount:

$500,000 - $10,000,000

Loan Term:

5, 7, 10, 12 or 15 Year Balloon; 25, or 30 Year fully amortizing

Amortization:

25 or 30 Years, based on property condition

Loan to Value:

Multifamily: Maximum 80% of appraised value, or if property has been purchased within the past 12 months, 80% of lower of: a) purchase price, plus value added renovation, plus 3% closing costs, or b) appraisal; Commercial Properties Max LTV typically 65% - 75% 

Interest Rate:

Risk-based “Tier” pricing, varying with LTV and DSC ratios

Prepayment Terms:

Lockout/fixed, step-down prepayment schedules

Third Party Reports:

MAI Appraisal, Physical Needs Assessment, and Environmental Phase I Assessment are required, plus Seismic Report may be required for properties in Seismic Zones 3 and 4

Reserves:

Tax and insurance escrows are required; Funded Repair and Replacement escrow is required, based on engineer’s Physical Needs Assessment; For loans of less than 65% of value with no deferred maintenance, funding of repair and replacement reserve can be waived at lender’s discretion

Application Fee: 

$5,000 - $15,000; Covers 3rd Party reports and processing/underwriting costs

Legal Fees: 

$1,000 to $5,000 varying with characteristics of the deal