12 Best Commercial Real Estate Loans 2023

By Terry Painter, Mortgage Banker

Member of the Forbes Real Estate Council

Author: The Encyclopedia of Commercial Real Estate Advice – a WILEY book – OUT NOW!

 

What are the best commercial real estate loans for 2023?  Find the commercial loan that is the best fit for your commercial real estate investment goals. The loan programs listed in this article are based on the best loan terms overall, such as best interest rates, highest leverage and the easiest to qualify for.

 

The number 1, best commercial real estate loan in America based on rate, terms and what it takes to qualify is a HUD/FHA. This loan features 85% LTV and has a fully amortizing very low 35 year fixed rate.  Number 2 is the SBA 7-A and 504 – these can go up to 90% LTV and are easy to qualify. The Fannie Mae Green Program is number 3 with up to a 30 year great fixed rate.

 

Table of Contents

1. HUD/FHA
2. SBA Loans
3. Fannie Mae Green Program
4. Fannie Mae Student Housing
5. Freddie Mac Multifamily Loans
6. CMBS Loan Program
7. Life Company Loan Program
8. REIT Loan Program
9. National Bank Loan Program
10. Regional Bank Loan Program
11. Community Bank Loan Program
12. Private Money Loan Program

 

1. HUD/FHA Loan Programs

FHA/HUD – starting at about $2,000,000, loans on apartment buildings, senior housing 62.5 and older communities, independent senior living and assisted living facilities.  Nursing homes, and hospitals too. Loans go up to 85% LTV, 87% for affordable housing. Rates can be fixed for up to 35 years with a 35-year amortization.

Best HUD Commercial Loans

223f Multifamily Loan – for refinance or purchases of existing apartment buildings that are at least 3 years old.  This loan can go up to 85% with no cash out if you are refinancing and 80% with cash out. Property is required to be put into very good condition, so this is an opportunity to handle all the deferred maintenance you have been procrastinating on. For existing multifamily properties. Lite rehab allowed. Up to 85% LTV. Maximum term and amortization 35 years. 

• Minimum Loan:  $2,500,000    Maximum Loan:  None
• LTV:  85% for market rates, 87% for affordable, and 90% for rental assistance, 80% for cash out
• Rates Fixed up to 35 years
• Term: Up to 35 Years    Amortization:  Up to 35 years
• Minimum DSCR:  Market Rents: 1.176, Affordable: 1.15, Rental Assistance: 1.11
• Non-recourse
• Commercial Space: 25% of net rentable area and 25% of effective gross income
• Assumable with a .50% fee
• Qualified Properties:  Must have 3 years since certificate of occupancy
• Repairs: Cannot exceed the greater of $15,000 per unit
• Occupancy: Minimum of 90% for 90 Days
• Age Restricted Properties of 62 or older allowed

 

FHA 223 (a) (7) Streamline Refinance

Only for health care and multifamily loans that are existing HUD loans. What makes this loan so exceptional is that you can refinance your existing HUD commercial loan with much better rates and terms when rates are more favorable. This loan can close quickly (60 days). It does not require an appraisal, has real low loan expenses, and a great purpose – to give you lower loan payments when the rates of interest are lower. The maximum loan size is the size of the original mortgage, or it could be the balance of the existing HUD loan plus loan expenses as well as repairs. There isn’t any restraint on LTV.

• The loan amount: lesser of 1. Original amount of principal of the present HUD mortgage or 2. The present balance plus closing costs, loan expenses, and costs of the prepayment penalty, plus the cost of improvements or repairs of deferred maintenance.
• The rate of interest is fixed for the whole term. Often you can qualify for a 35 year fixed all over again.
• Term of loan: It must not go beyond the original term, or a maximum of 12 years more than the present HUD loan term. The property’s remaining economic life will be taken in consideration.
• The interest rate is good for the whole term.
• The length of amortization is the same length as the term of the loan.
• For the LTV, there is no restraint on loan to value.
• The minimum DSCR ranges from 1.11 to 1.20.
• It is a non-recourse loan.
• For third party reports there is no appraisal, most often no environmental report, no report for property condition (PCNA) required unless a property condition report hasn’t been filled out in the past 10 year period.
  • Assumption fee of .50%
  • Cash out is not permitted
  • There are reduced expenses and loan fees
  • 60 days to fund loan

 

HUD 232 Senior Care

The following FHA loan is for the purchase or refinancing of assisted living care that is already existing, intermediate or facilities for skilled nursing and memory care. Allowable is a maximum of 25% to 30% independent living.

80% FHA loan with very low mortgage rate fixed for 35 years and amortized for 35 years:

• Minimum size of loan is $4,000,000; Maximum loan size is $100,000,000
• 80% of appraised value is the loan to value (for non-profit it’s 85%), or 100% of a refinance transaction cost, and for a purchase, 85% of the transaction costs.
• What can be included in transaction costs: initial replacement reserves, repairs, 3rd party reports, costs for closing, and existing debt that is eligible for refinancing.
• The rate is fixed for 35 years, and has a very low treasury based rate of 10 years.
• Amortized for 35 years
• Term of 35 years
• Non-recourse loan
• 1.45 DSCR
• .50% assumption fee
• Prepayment penalty is for the first 10 years a declining prepayment, and then it goes to no prepayment for the 25 years that remain.

 

2. SBA loans

What makes these loans so exceptional is that you can borrow up to 90% of the property cost plus improvements, and you do not have to be wealthy or have much cash. In fact, if you have too much money you will not qualify. SBA lending is for owner occupied business property. Hotels and self-storage properties are included. Apartment buildings and most other commercial property types with the exception of owner occupied office properties will not qualify.  Any single tenant owner occupied property will qualify.

Some very special features of SBA loans is that you can still achieve high leverage of 85% to 90% when buying a business preferably with real estate that does not currently qualify for a loan that large if you have the right mitigations. You can land a larger loan just by being successful with extra income from a business you own in the same industry. SBA will also allow the owner to carry 10% to 20% more with a delay in when the payments start on the owner carry mortgage.

The organization called The Small Business Administration (SBA) has a guarantee for small business loans that are given out by lenders who are approved. SBA loans are offered by most commercial banks which keep them on their books. The best deals are often with secondary market SBA lenders who sell 100% of  the SBA guaranteed portion of the loan on the secondary market. These lenders are often Preferred SBA Lenders which can approve the loan themselves without going though the time and red tape it will take the SBA to approve the loan. They can often lend more money because they can go down to a very low debt service coverage ratio – sometimes as low as 1.10.

 

Six strong reasons to get a SBA Loan
 

i. You own your own business and own or want to own the property it occupies

Rather than throw your money away on rent, you invest in your business as well as your personal financial future. And when you have paid off the building or machinery, you have the happiness of having the same income and not have to make a monthly payment. And you have the choice of having income from renting out the space to other businesses.

 

ii. You have a low down payment 

You can get a down payment as low as 10 percent. If you need to have liquidity for your business, this is an important factor. Many other commercial property loans require 20%, 25%, or more down.

 

iii. You can receive value

If you choose the SBA 504 loan, you then get appreciation and tax benefits of the real estate and at the same time you lock in the occupancy costs for 20 years. Just this last benefit alone is huge.

 

iv. Your loan is government backed

Being government backed, SBA loans increase accessibility of loans for business property. The purpose here is that the SBA helps increase local community’s economic strength.

 

v. You do not qualify for a conventional loan

If your business has been turned down for a conventional real estate loan because of your lack of cash or experience, you may likely qualify for an SBA loan. Lenders are willing to take a chance on you because the government is guaranteeing 75% of the loan.

 

3. Fannie Mae Multifamily Green Loan Program

What makes this multifamily loan program so amazing is that for just improving some small items like changing to energy efficient light bulbs and water-restricting shower heads you can lower you interest rate by close to a third of one percent. This can be an interest savings of $600 per month on a two million dollar loan.

Fannie Mae Green Program Features

• Minimum loan size is $1,000,000 and there is no maximum loan size
• Best for older apartment properties that have not had energy efficient upgrades
• Fixed rate period of 5 – 30 years
• Maximum loan to value of 80% for purchases and 75% for refinances
• No Tax Returns Required
• Non Recourse
• No Income Verification
• Assumable with a 1 point fee
• 1.25 Debt Service Coverage Ratio
• 90% occupancy required for 90 days (can get a waiver on this in high occupancy markets)
• 680 minimum credit score
• Net worth equal to loan size
• 9 months mortgage payments for post-closing cash required
• Yield maintenance or declining prepayment penalty

(For more on the Fannie Mae Multifamily Loan Program, see Fannie Mae Apartment/Multifamily Loans)

 

4. Fannie Mae Student Housing Loans

What makes this such a good student housing loan program is that the property can be rented by the unit or by the bed. By the bed is a problem for many lenders. Also, great long term fixed rates are offered. Tax returns are not required on the key principals. For multifamily/apartment properties only, and general student housing properties, loans begins at $1,000,000. Student occupancy must range from 20% to 80% or it could be more. Our Fannie Mae Dedicated Student Housing program has a requirement of occupancy to be 80% or more. These properties are mostly rented out by the bed, instead of the apartment unit. 

• Those student housing properties that are eligible are required to be located within a distance of 2 miles from a major sized university. That university is required to have a minimum of 10,000 students with at least 50% of them being full time. Pertaining to the subject property, it needs to be within easy walking distance to the university, or it is required to be on a bus line that is sanctioned by the university. The property can be located on university-owned land only if the student housing loan has the key principal operating at least one other student housing property that is dedicated on land owned by the university, and the key principal has at least 5 years experience.
   

Terms and Guidelines

• $1,000,000 minimum size of loan
• Credit score minimum 680
• No Maximum loan size
• Minimum DSCR of of 1.30
• Fixed rates and term of 5 to 10 years
• Usually required is student housing experience
• Management company for student housing is required
• Amortized for 25 years
• Subordinate financing is not permitted
• Loan can be assumed
• 90% occupancy for 90 days is minimum occupancy
• Prepayment penalty is yield maintenance

 

5.  Freddie Mac Multifamily Loans

Freddie Mac Apartment/Multifamily Loan

This loan program really excels in having some of the lowest interest rates when the subject property is in a large city.  Also, full-term interest only is available for loans at 65% LTV or lower. Another great feature is a .30% lower rate if the multifamily property has a majority of affordable rents in place. 

Minimum Loan $1,000,000	Minimum Credit Score 660
Up to 80% Loan to Value	Net Worth equal to loan size
30 year amortization	9 – 12 months post closing liquidity required
5,7 and 10 year fixed rates	No replacement reserves
Converts to an ARM	Non-recourse
Interest Only for 1 – 10 years	Tax Returns not required
Assumable	Step down prepayment available
90% occupancy for 90 days	DSCR: 1.20 – 1.25

 

Freddie Mac Student Housing

Our mortgage program of Freddie Mac Student Housing has a $5,000,000 minimum. The location needs to be no less than 2 miles from universities and/or colleges. It also needs to be located close to a major route for buses going to the schools. The university or college needs to have enrollment no less than 8,000 students. Several schools can be grouped together for making the enrollment minimum. Fannie Mae does not allow this. These properties must have a minimum of 50% students.

Each property is required to have its own kitchen, and for every 2 bedrooms, there needs to be at least one bathroom. It’s best to have a lease of 12 months, but a lease of 9 months is taken in consideration. For residence halls and dormitories, the sharing of a large bathroom or central kitchen is not permitted. Also not allowed is centralized food service.

It’s best to have a lease that has parental guarantee, but if the student has credit that is strong, it is not required. If you would like more information on this program go to
info on this program go to: Financing/loans terms and requirements for Freddie Mac Student Housing

• The minimum loan size is $5,000,000
• The maximum loan size is $100,000,000
• Loan to value has a maximum of 80%
• Minimum credit score allowed is 660.
• 1.30 is the DSCR, for cash out refinance it’s1.35
• Amortized for 30 years.
• The loan is non-recourse.
• Not permitted is subordinate financing
• Commercial space of 20% permitted
• Rate can be fixed for 10 year maximum.
• Prepayment penalty is defeasance.
• Debt to income ratio not required
• An interest only loan may be permitted
• Permitted is mezzanine loan to max of 90% CLTV
• An annual lease is usually needed.

 

6. CMBS Loan Programs

What makes these loans more exceptional than most is that they are always non-recourse, and it is easier to qualify if you have a smaller net worth and do not show much income on tax returns. However, a stronger property in a good location is preferred. Furthermore, you can get one loan for many properties even if they are located in different states. CMBS lenders love flag hotels which is a more difficult property type to finance. CMBS loans start out at $2,000,000 and lenders lend on office buildings, shopping centers, apartments, industrial buildings, hotels, self-storage buildings, as well as the majority of other commercial properties. Loans are made with a maximum of 75% loan to value. A fixed rate for 5 or 10 years is available, and the majority of CMBS loans are amortized for 30 years. There is also an interest-only option for the first 2 years. 

CMBS is an acronym for Commercial Mortgage Backed Security loan. This loan is also called a conduit loan. Pooled with other loans having the same maturity, these loans are sold to investors as mortgage backed security bonds. Rates can be fixed for 5 or 10 years and rates are low.

CMBS financing is stated in nature, in that tax returns are not required. Also, a debt to income or global ratio is not done by the lender. Another quite popular aspect of these loans is that they are different from the majority of other commercial real estate loans because they do not have as high liquidity and net worth requirements.

Guidelines for CMBS Loans

• Size of loan ranges from $2,000,000 to $50,000.000 and more.
• Loan amortized for 25 or 30 years
• 5 or 10 year term
• Its purpose is purchase or refinance
• Ground up construction is not permitted.
• Type of property allowed is office, retail, self storage, multifamily, industrial warehouse, mobile home parks.
• Blanket loans are allowed for residential rental properties having at least 5 different rental properties in the bundle.
• Non-recourse loan
• Defeasance or yield maintenance prepayment penalty.
• Less than loan size for net worth requirement is allowed.
• 12 months mortgage payments required for post closing liquidity
• 1.00% origination fee
• 660 is minimum credit score
• The rate is calculated by taking the 10 year treasury yield and adding 2.25% to 2.75% to it.
• Additional loan expenses are appraisal, property condition report, legal and processing, environmental report.

 

Most of the time CMBS loans are amortized for 25 to 30 years. They have a balloon payment due at the end of the term. CMBS loans are not placed on the balance sheet of the conduit lender. Loans are often closed from the lenders funds or from a warehouse line of credit. Within 2 – 4 months, the loan is sold on the secondary market, and the lender get these funds back to lend again.

 

Senior housing CMBS loans

• These loans are for assisted living, independent care, memory care, or they can be for a combination of any of these.
• Loan size ranges from $3,000,000 to $50,000,000.
• 75% Loan to Value   With Mezzanine piece, maximum of 80%.
• The rate is the 10 year treasury plus 2.0% to 2.50% for a fixed rate of 10 years
• Term is 5 years or 10 years
• Amortized for 30 years
• Prepayment penalty is Defeasance or yield Maintenance
• DSCR is from 1.30 to 1.40.

 

CMBS General Loan Terms

• All commercial property types allowed
• Interest only available for the first 2 years
• 5 or 10 year fixed rate term
• 1.25 – 1.355 DSCR
• Loan is assumable
• Size of Loan is $2,000.000 to $500,000.000
• Maximum loan to value of 75%
• Territory is nationwide
• Amortized for 25 to 30 years
• Commercial space allowed is unlimited
• 680 minimum credit score
• No tax returns required
• Flexible net worth requirement

 

CMBS Loans for Student Housing (Financing Requirements and Terms) 

• $1,500.000 is minimum loan size
• $50,000.000 is maximum loan size
• Credit score minimum is 650
• 1.30 DSCR
• Maximum LTV of 75%
• Prepayment penalty is Defeasance or yield Maintenance
• Fixed rates of 5 years and 10 years
• Commercial space is permitted
• Loan can be assumed
• Loan is non-recourse
• Loan amortized for 30 years
• Debt to income ratio not required
• Student housing experience not required
• Usually required are annual leases

 

7. Life Company Loan Programs

What makes this loan so attractive is that interest rates are exceptionally low and can be fixed for a long time. In commercial lending the longer you fix the rate – the higher the rate. If insurance money, long term fixed rates are just a little higher. You can get a 10 or 15, or 25 year fixed with a 25 or 30 year amortization. You can even get a fully amortizing 25 year loan. LTV is usually 65% to 70%.  A life insurance company or a group of life insurance companies make Life Company Loans. These loans are typically for retail, office, multifamily or industrial properties. Dependent on individual circumstances, sometimes hospitality properties can be financed with a life company loan.

On the down side, it takes a stronger than average high net worth experienced borrower to qualify for these loans. There are many investors and business owners who look to life company loan programs as an alternative to Freddie Mac and Fannie Mae-insured financing. Life company loans love newer properties of high quality in larger metropolitan areas. And, again, stronger-than-average borrowers.

Life companies and Non-Recourse Loan Financing 

• Life companies include most commercial property types for non-recourse loan financing.
• The term is fixed rate for 5 to 25 years
• Amortization from 15 to 30 years
• The loan can be assumed
• 1.30 DSCR
• The size of loan ranges from $5,000,000 to $750,000,000.
• The territory is nationwide
• Maximum 70% loan to value
• 720 is minimum credit score allowed.
• Unlimited commercial space permitted
• Loan amortized for 20, 25, and 30 years
• Net worth requirement is 1.5 times the loan size
• Tax returns are required.

Life Company Loan and Assisted Living, Memory Care, or Any Combination of Either 

• Loan minimum is $10,000,000 to $15,000,000
• Loan maximum is $125,000,000
• 65% to 70% loan to value
• Up to 25 years fixed rate; treasury based rates are very low
• 5, 10, 15, 20, and 25 year terms are available
• Defeasance prepayment penalty
• Non-recourse loan
• 1.45 DSCR

 

8. REIT Loan Program

An REIT is an acronym for Real Estate Investment trust. It is a type of company that has ownership, and most of the time it runs real estate that produces income. REITs have ownership over numerous kinds of commercial real estate - multifamily, office, retail, warehouses, hotels, hospitals, as well as timberlands.

Most REITs are equity REITs. They invest in commercial property that is used to generate income. Mortgage REITs provide financing for real estate through originating mortgage loans as well as mortgage backed securities. The goal of these mortgage REITs is to generate interest income.

The owners of mortgage REIT shares have the opportunity to generate high profit from the high paying dividends they receive. This is why lots of investors decide to get in this form of investment.

How Mortgage REITs Work 

Mortgage REITs operate by giving financing for realty by purchasing or originating mortgages as well as mortgage-backed securities, and then they earn income from the interest generated from these investments.

There are some mortgage REITs that put their focus on residential mortgages as well as mortgage-backed securities, while other mortgage REITs put their focus on commercial mortgages as well as mortgage-backed securities. In addition, there are mortgage REITs that have a combination of both residential and commercial mortgages. The investment in a mortgage REIt involves the purchasing of shares of that REIT, like when you buy shares of stock in a company.

The Difference Between Mortgage REITs and Equity REITs

When you have ownership in a mortgage REIT, you are investing in and have ownership of mortgages. When you have ownership in an equity REIT, the equity REIT acquires real estate properties in order to operate them for generating income from rentals.

How both types of REITs are similar is that both types have to meet the requirement to distribute a minimum of 90% of their income to the shareholders, and not use that 90% for growth. There are far more equity REITs than mortgage REITs even though mortgage REITs frequently give higher dividends than that of equity REITs.

REITs and Non-Recourse Loan Financing

• REITs for non-recourse loan financing prefer multifamily, but other types of loans are taken into consideration.
• 5 to 15 year fixed rate term
• Size of loan from $3,000,000 to $30,000,000
• Nationwide territory
• Loan can be assumed
• 1.30 DSCR
• A maximum of 75% loan to value
• 30 year amortization
• 700 minimum credit score
• Maximum of 25% commercial space is permitted
• Net worth must be at least as much as the loan size

 

9. National Bank Loan Program

National Bank Loan –  These loans begin at $10,000,000 and have a maximum 70% loan to value.  The best feature of this loan program is that it can handle really large loans – up to $150 million dollars. A national bank loan will lend for most types of commercial real estate. What makes these loans exceptional is that they offer one of the very lowest 10 year fixed rates tied to SWAP rates. Also, they offer a seamless very low construction loan roll over to perm loan.

• $10,000,000 minimum loan size
• $150,000,000 maximum loan size
• Maximum of 70 % loan to value
• 10 year term
• The rate is a very low libor adjustable or based on treasury swap rate 5 to 10 year fixed
• Loan is amortized 25 to 30 years
• Must qualify in order to get non-recourse
• Defeasance or yield maintenance prepayment penalty
• 1.35 DSCR

 

10. Regional Bank Loan Program

What makes these great loans is that they have some of the best rates and very low loan costs. In some cases you can get all third party reports and legal for under $5,000.  Best of all, you often, but not always, fix the rate at application. Most commercial loan programs fix the rate at loan approval, or when documents are drawn. Regional bank lenders will lend at up to 75% loan to value. Rates can be fixed from 3 – 10 years and there is a declining prepayment penalty. Loan is recourse unless the borrower is very strong and the loan to value is under 55%. Regional Bank Lenders love construction loans and roll them over to some of the highest loan to cost perm loans. Most commercial property types are included. Hotels are not favored.

• $1,000,000 is the minimum loan size
• $15,000,000 maximum loan size
• Maximum of 75% loan to value
• 3 - 10 year term
• Declining prepayment penalty
• The rate is tied to the corresponding treasury rate
• Loan is amortized for 30 years
• Almost always recourse. Non-recourse available for low leverage strong borrowers
• 1.20 – 1.25 DSCR

 

11. Community Bank Loan Program

Apartment Loan Store is affiliated with over 120 community banks nationwide. One of the best features of using a community bank is that there is almost no minimum size loan. After all, what community banks really want is a deposit relationship with you. So be prepared to move one or more of your bank accounts. Banks can lend on just about anything related to business or investment property. If you need to do lite rehab on your commercial property, or ground up construction, this is a great program. Another great feature is that so many types of loans are offered. All property types are considered including hotels that are not flagged. These loans are always recourse and with the exception of SBA lending, require good income and tax returns. Here are some of their loan products:
 

Operating lines of credit
Credit lines that are convenient as well as flexible can help with seasonal cash flow business cycles. Some banks allow online access of credit line funds if a customer’s credit line doesn’t require a draw request. Secured as well as unsecured credit lines are available. Secured lines on commercial real estate are one of their best products.

 

Construction and Rehab financing

Credit facilities are given to finance the construction phase of most development projects. Ground up construction and rehab loans are preferred as long as there is not too much concentration of the property type in the submarket. 

 

Commercial Real Estate Loans

Community Banks can lend on any type of commercial real estate up to 75% LTV.  Business occupied and industrial properties are preferred, but any type of commercial property will usully work. And where national and governmental lenders usually require loans to be at a million dollars or more, these banks will do almost any size loan.

 

Business loans
Business loans are done in order to inject working capital, upgrade equipment, or consolidate debt from business. Helping you buy your own building if you are renting is encouraged. These loans, payment plans are put together to fit financial needs and fit the cash flow situation. This can help with growth and the profit of the company.

 

SBA and USDA Loans
A community bank can work hand and hand with SBA and the USDA (United States Department of Agriculture) to give loan guarantees for projects for higher risk loans.

 

12. Private Money Loan Program
Also called institutional Loan Programs. For commercial real estate deals where the borrower is not bankable because of credit, financial strength or because they have too many projects going at the same time, Private Money is usually the best fit. Although rates are a good deal higher than conventional bank financing, the red tape is very small. These lenders do perm loans, bridge loans and construction loans.

Bridge loans are a favorite for private lenders. Often called “Soft Money Loans,” rates for these programs are considerably lower than hard money loans. These are short-term and are used for buying commercial properties in situations when permanent financing will not work as an option because occupancy is low or the property needs rehab. 

The major use of a commercial bridge loan is when property requires lots of renovation prior to it being able to qualify for permanent financing. But, here are some additional reasons an investor will consider getting bridge financing.

i. The property has occupancy that is too low.
ii. The borrower’s credit score is too low.
iii. Ownership is incomplete / the project team is in place
iv. It will take too long to get permanent financing; the borrower needs a bridge loan quickly in order to have time to qualify for the permanent loan.

Repayment terms generally range between 6 months and 3 years. When the bridge loan term expires, the property goes through refinancing with a permanent loan, or it is sold.

A great feature of private money bridge loans is how quick they close. There are so many situations in which quick closings are needed. A difference between bridge loans and conventional loans is that bridge loans are based on what the improved stabilized value of the property is evaluated at rather than value that is considered “as-is.”

Thus, private money bridge loans provide the money that a borrower requires to close on properties quickly, do renovations if needed, plus sell or refinance into a permanent loan.

Private Money Loan Terms

• $3,000,000 minimum loan size
• $150,000.000 maximum loan size
• 2 – 5 year terms
• Usually interest only
• Usually a non-recourse loan
• 75% loan to value, with part of it that’s mezzanine, it’s up to 85%.
• Libor based adjustable rate – from 6.50% to 10.00%
• Yield maintenance prepayment penalty
• 1.35 to 1.45 DSCR
• Nationwide
• Not assumable
• Tax Returns Required
• All property types considered including Hotel

 

By Terry Painter/President   Apartment Loan Store and Business Loan Store