|
Owner-Occupied Business/Real Estate Loans
Minimum $1,000,000
Permanent first mortgage loans on select commercial real estate properties with the following rates and terms:
|
Objective
|
Provide construction financing and/or permanent financing on owner-occupied property for successful cash-flowing businesses where the owners have good credit ratings.
|
|
Eligible locations:
|
Continental US
|
|
Eligible properties:
|
Owner-occupied (25% or more), single or multi-tenant, commercial real estate properties. Industrial, warehouse, retail, office, hotels, mixed use, special purpose including restaurants, funeral homes, assisted living, automotive, C-stores (no fuel), day care, medical office, and more.
|
|
Business type:
|
Established, cash-flowing business. Start-up businesses are not eligible.
|
|
Occupancy:
|
Multi-tenant is permitted, but owner must occupy at least 25% of the property
|
|
Eligible transactions:
|
Construction, acquisition or refinance
|
|
Transaction size:
|
$1,000,000 to $8 million
|
|
Purchase - LTV/LTC:
|
The lesser of : “As Is” appraised real estate value or actual purchase price, based on the credit of the principal:
|
FICO
|
LTV/LTC
|
|
600+
|
75%
|
|
Higher LTV's with additional pledged collateral
|
90%
|
|
> 559
|
Not eligible
|
|
|
Refinance - LTV
|
Using "As-Is" appraised market value:
|
FICO
|
LTV
|
|
600+
|
75% with cash-out
|
|
|
Fixed rates
|
|
Index
|
Fixed
|
Term
|
Amort
|
|
US Swap
|
5 years
|
10 years
|
25 yrs
|
|
FHLB
|
5 years
|
10 years
|
25 yrs
|
|
|
Adjustable rates:
|
|
Index
|
Adjustments
|
Term
|
Amort
|
|
Prime
|
with Prime
|
5-10-25 yrs
|
25 yrs
|
|
90 Day LIBOR
|
Quarterly
|
5-10-25 yrs
|
25 yrs
|
|
|
Prepayment Penalty
|
|
Flat 5%
|
or Flat 7%
|
[lower interest rate]
|
|
or 10-10-9-9-8-8-7-6-5-5% years 1 through 10 respectively
|
|
|
Security:
|
First mortgage lien on the subject property, assignment of all permits and approvals, assignment of leases. No security interest in receivables, inventory, fixtures, equipment, furnishings or other collateral.
|
|
Ownership:
|
Single asset, special purpose entity.
|
|
Application Fee:
|
Fee of $1,500 to $2,000 is due with the signed Application, depending on property location and transaction size.
|
|
Origination Fee:
|
1% to 3% payable at Closing
|
|
Prepayment:
|
Up to 20% of principal balance may be repaid annually without penalty.
|
|
Commitment Deposit
|
½ of 1% of loan amount or $10,000, payable upon acceptance of Loan Commitment depending on loan program for 3rd party costs, legal and closing. Balance applied towards Origination Fee or refunded at closing.
|
|
DSC:
|
Minimum of 1.25 - Net business income (EBITDA) plus rents from other leased spaces, if any.
|
|
Recourse:
|
Full Recourse.
|
|
|
Secondary lien on additional collateral may be required for credit enhancement
|
|
Escrows:
|
Real estate taxes, hazard insurance. Optional
|
|
Second Mortgage:
|
Permitted with permission of Lender based on consolidated DSC (excluding loans over 80%).
|
|
Third Party Reports:
|
Appraisal, Phase I environmental and others if required, ordered by Lender at expense of Borrower.
|
|
Closing Time:
|
30 – 45 days from completed Application.
|
Net Commercial Loans, Llc, October 2008. Subject to Change Without Notice
|