We are lucky to have a great new source of private funding for non-owner occupied residential and commercial properties, loan amounts from $200,000 up to $1.5milion. These are high-cost loans, but require less stringent underwriting guidelines and can be used with no income if the building is generating enough income on its own to support the loan payments. These loans are sometimes referred to as “Hard Money”, as they are underwritten differently than regular loans. Cost usually includes 2-4 points up front and rates start in the high 8%’s, going up to approximately 12% per year, depending on risk profile of both borrowers and the building.
An appraisal will be required. These loans can also be used for temporary financing while an owner waits on an SBA loan or other financing to come through on a property, and can be funded in as little as 10 days. These loans are generally used to fill a temporary need when borrower, property, or both do not meet underwriting guidelines and would not qualify for a loan through traditional borrower channels.
Commercial Loans/Mixed Use
Apartment Buildings 5+ units
Will lend up to 65% LTV in first or second position
Residential, non owner occupied ONLY:
Will lend up to 65% LTV in first or second position
Hotels and Motels
Up to 65% LTV in first or second position
Probates and Conservatorships (great product for heirs who may need money to prepare a property for sale)
50-58% LTV in first position only
Equal Housing Lender. |