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Friday, June 5, 2009

Commercial Financing- what's hot and what's not??

These are the loan types that are easiest to fund given current market conditions.

1) SBA loans for owner occupied / owner run businesses up to 80% of purchase price, project costs or appraised value of real estate. We can go up to 90% of project costs for medical professionals with one of our special SBA programs. Minimum loan amount $400,000. Maximum loan amount $2,000,000.

2) FHA loans for multi-family housing or assisted living facilities. Up to 85% 1st lien financing. 35 - 40 year amortization. Fixed rates. 1.18 DSCR. Only negative is that depending on size and complexity of project and which state the project is in - most HUD offices are back up and closings could take 4-6 months from date of application to funding. Prefer $2 million minimum. No maximum on this program.

3) FNMA / HUD loans for multi-family up to 80% LTV. Only taking 60 days to close these in most cases. $750,000 minimum loan amount to $20,000,000. Minimum DSCR was just increaased to 1.25. Need 90%+ occupancy.

4) USDA Rural loans for businesses (owner occupied and investment properties are elligible). $750,000 minimum. $10,000,000 maximum. Up to $5 million, in house underwrtiting approval. Over $5 million requires Washington DC approval so add 30-60 days to sgtandard 60 day closing process. Prime + 2.50% adjustable quarterly. To be elligible, the business / property must be based in a municipality with 50,000 or less population.

5) Loans against securities (stocks, bonds, treasuries) with no income verification or minimum credit requiirements. Loans of 60% - 80% of current asset value of portfolio. Rates are interest only in the 5% - 6% range. All we need is recent monthly or quarterly statements to review and within 3-5 business days we can generally issue a formal loan proposal offer. Close and fund in less than 30 days in most cases.

We offer many other programs, but given the tight market conditiions that exist today, these are my recommendations for the quickest and easiest route to loan approvals and closings.

Tony DeCresie

Commercial Capital, Ltd.
Your #1 Source for Business & Commercial Loans
Office: 863-299-2929
Fax: 863-877-4456
Cell: 813-833-3132

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