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Thursday, October 16, 2008

Where's the Money? Answers from the Experts

From the Experts at

This is what the lenders of money are saying:

  • Commercial construction loans for condominiums, condo-conversions or residential home developments will be very tough in this unstable market. There is a new program with funds available but only the strongest of these deals have a chance to get funded. Visit
  • Financing for gas stations and restaurant purchases and start-ups will be tough.
  • Funds are still readily available for multi-tenant properties like apartment buildings, office buildings, strip centers, shopping malls, mini storages, etc. Existing income producing properties with a verifiable track record of cash flow are the preferred property types right now for most lenders.
  • Unsecured Business and Personal Lines of Credit are getting tougher to approve. Absolute minimum credit scores (all 3 bureaus) are 700+. Absolute minimum time in business is 2 years. But to secure amounts above $100,000, your prospect better have mid-700’s or higher scores and be in business a lot longer than 2 years. Also, business owners who are Realtors, real estate investors, contractors or are in any other business where the industry is considered “depressed” – may get denied even with excellent personal credit unless they are willing to document income with tax returns.
  • The best Venture Capital sources seem to have tightened their purse strings extensively and become very picky. Funding for venture capital and joint venture projects is very difficult right now.
  • Accounts receivable financing and merchant credit card cash advance programs are still going strong with very flexible guidelines, easy approval and quick funding.
  • Our Interest Only / No Doc loan program for small loan amounts is also very strong right now. $150,000 - $300,000 loan amounts for investment properties. $150,000 - $600,000 for owner-occupied properties. No minimum credit score requirements. No income verification required. Maximum 60% - 65% loan to value. As long as you stay within the loan amounts mentioned above.
  • No income verification loans are still available but maximum loan to value is currently 70% for purchases of most commercial property types and 60% -65% LTV for refinances. Maximum loan amounts typically can not exceed $1 million for these programs.

Call us today if you have a loan scenario you would like to dicuss: 863-298-8900 or 813-833-3132. Or visit our website and fill out a short pre-qual form at:

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