Owner occupied is defined as a property that is 51% or more occupied by the borrowers business
Loan/Value Ratio not to exceed 65% (Up to 90% with seller carry).
Up to 25 year amortization.
Economic life of the property must exceed amortization by 5 years or more
Minimum loan amount of $250,000. Maximum 1st TD loan amount of $6,000,000.
Minimum credit score of 675 with no recent adverse history. No prior bankruptcies or foreclosures allowed
Minimum DSC ratio on multi use properties of 1.20x for purchase, 1.20x for refinance. Minimum DSC ratio of 1.30x for all special use properties
Minimum of 3 years in operation with proven, competent management
Management factor underwritten at 5%. Vacancy underwritten at the greater of actual or10%.
Cash out refinances typically not allowed unless proceeds are being used to improve the subject property, purchase other real property, or pay off other real property
Ideally borrower has post close liquidity of 10% of the loan amount
For refinances properties purchased within the last 5 years will be valued on their acquisition cost plus any documented improvement cost to the property
We are currently not funding any Conventional owner occupied properties in AL, FL, IN, LA, MA, ME, MI, MS, NJ, Northern OH, OK
B. MULTI-USE INVESTOR
Loan/Value Ratio not to exceed 65% (Up to 85% with seller carry).
Up to 20 year amortization.
Economic life of the property must exceed amortization by 5 years or more
Minimum loan amount of $250,000. Maximum loan amount of $3,000,000
Minimum credit score of 675 or greater with no recent adverse history. No prior bankruptcies or foreclosures allowed
Minimum DSC ratio of 1.50x with interest rate stressed at 6.5%
In multi-tenant properties, tenancy to include diverse range of services appropriate to location
Occupancy levels consistent with the surrounding market
Leases with less than six months’ remaining term may be eliminated or discounted.
Rollover costs to be calculated at market levels for tenant improvements and leasing commissions
Prior investment property ownership of commercial real estate required
Management underwritten at 5%. Vacancy underwritten at the greater of actual or10% depending on area.
We are not currently funding investment real estate in AL, AR, AZ, CA, FL, IN, LA, MA, ME, MI, MS, NJ, NV, OH, OK
All investor properties valued for underwriting purposes based on a minimum cap rate of 7.5%. Upward and downward adjustments made depending on property class and location
Cash out refinances not allowed unless proceeds are being used to improve the subject property, purchase other real property, or pay off other real property
For refinances properties purchased within the last 5 years will be valued on their acquisition cost plus any documented improvement cost to the property
Ideally the borrower has post close liquidity of 10% of the loan amount
Borrower must demonstrate the ability to service a minimum of 25% or the debt service of the subject property from discretionary cash flow
C. SPECIAL-USE INVESTOR
Loan/Value Ratio not to exceed 55% (Up to 80% with seller carry).
Up to 20 year amortization.
Economic life of the property must exceed amortization by 5 years or more
Minimum loan amount of $250,000. Maximum loan amount of $3,000,000
Minimum credit score of 675 or greater with no recent adverse history. No prior bankruptcies or foreclosures allowed
Minimum DSC ratio of 1.50x with interest rate stressed at 6.5%
In multi-tenant properties, tenancy to include diverse range of services appropriate to location
Occupancy levels consistent with the surrounding market
Leases with less than six months’ remaining term may be eliminated or discounted.
Rollover costs to be calculated at market levels for tenant improvements and leasing commissions
Prior investment property ownership of commercial real estate required
Management underwritten at 5%. Vacancy underwritten at the greater of actual or10% depending on area.
We are not currently funding investment real estate in AL, AR, AZ, CA, FL, IN, LA, MI, MS, NV or OH
All investor properties valued for underwriting purposes based on a minimum cap rate of 7.5%. Upward and downward adjustments made depending on property class and location
Cash out refinances not allowed unless proceeds are being used to improve the subject property, purchase other real property, or pay off other real property
For refinances properties purchased within the last 5 years will be valued on their acquisition cost plus any documented improvement cost to the property
Ideally the borrower has post close liquidity of 10% of the loan amount
Borrower must demonstrate the ability to service a minimum of 25% or the debt service of the subject property from discretionary cash flow
D. SBA 504 (OWNER OCCUPIED ONLY)
Combined Loan/Value ratio not to exceed 90% for multi use properties with the going concern business more than 2 years in operation, 85% for multi use properties with going concern business less than 2 years in operation.
Combined Loan/Value ratio not to exceed 85% for special use properties with the going concern business more than 2 years in operation, 80% for special use properties with going concern business less than 2 years in operation
Up to 25 year amortization for 1st TD, 20 year amortization for 2nd TD
Minimum credit score of 675 or greater with no recent adverse history. No historical bankruptcies or foreclosures allowed
Minimum DSC ratio of 1.20x for multi use, 1.30x for special use
Current or prior management or business ownership required
Ideally the borrower has post close liquidity of 10% of the loan amount
Borrowers required to submit 2 years proforma financials (first year broken out monthly) with supporting assumptions
We are currently not funding any Conventional owner occupied properties in AL, FL, IN, LA, MA, ME, MI, MS, NJ, Northern OH, OK
