Apartment Loans

Apartment loans are still available and offered through a variety of lenders. One product no longer available in apartment financing, is the 90% loan. You can get still get 80% financing and 30 year amortization. The apartment must have a debt service coverage ratio (DSCR) of 1.25 or greater. There are a variety of fixed rate terms as well. While the adjustable loan is still with us, there are 3, 5, 7, 10 and 15 year fixed rate loans with 30 year amortization schedules.

Gas Station Loans

Gas Stations are probably the toughest commercial loan to get funded. This type of property has to pass ownership experience, station branding, cash flow and environmental requirements. During the processing of the loan, it travels several different committees as it makes it way to the issuance of a Commitment Letter. It has to overcome legal issues, environmental issues and cash flow requirements. To align all of these groups together can become very unruly. Most gas station loans have an SBA element to the loan structure. Lenders will provide up to a 50% LTV loan while SBA will pickup the additional 35% of the loan request. So, to add insult to injury, you have a governmental component to the financing as well. I know this all sounds very daunting. That's why Crown Commercial Finance is here, to help you navigate this very complex process. I have some excellent sources for Gas Station financing. So call us now let's tackle this together.

Hotel Loans

Most hotel loans are being done under SBA 7(a) and 504 loans. Under the SBA 7(a) loans the loan to value limit is 85% of the purchase price or appraisal, whichever is lower. Your loan amount is also limited to $2 million. Combine conventional and SBA 504 loans and you can reach up to a $5 million in loan amount. These loans are also amortized to a maximum of 25 years. Currently, rates run from 6% to 7.34% depending on the loan program you pick.

Office & Retail Property Loans

This product comes in two flavors; investor and owner-occupied properties. Both are being scrutinized quite heavily so prepare yourself for a lot of paperwork. For investor properties the maximu loan to value (LTV)that a bank will finance is somewhere between 65% to 70% LTV. The property must have a 1.25 Debt To Service Coverage Ratio as well. For owner-occupied properties, prepare for full documentation loans. Meaning three years complete tax returns must be submitted. With these loans we can go a bit higher on the LTV, because we add in an SBA component. It's not as scary as it seems. But be prepared to do some paperwork.

No Pre Payment Penalty Loan

No Prepay Penalty loans are available in the marketplace.  I believe however that they have a certain place in your investment strategy.  If you want to fix up a commercial property and sell it quickly for a profit, then this is the loan for you.  However, if you plan on holding the property for a long period of time, this may not be the loan you should obtain.  The reason is that most No Prepay Penalty loans come with a 1% fee upfront.  So, if you plan to hold the property for 5 or more years, go with a prepay penalty and save yourself the upfront fee.  Call now for more details on this terrific program with low rates to boot!