Small wholesale commercial loans

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Commercial Loans Small Wholesale Mortgage

Small Wholesale Program ($1 Million to $5 Million)

Commercial Loan Direct offers a very competitive and flexible small commercial wholesale loan program.

LOAN ELIGIBILITY

Loan Criteria for Owner Occupied and Investor Properties

  • Satisfactory loan payment history
  • Fixed rates and variable rates
  • Fixed rates tied to SWAPS, variable interest rates tied to the Prime Rate
  • Loan-to-value up to 75% stand alone and 90% with SBA-504 companion
  • Loan maturity and/or amortization not to exceed 20 to 25 years
  • Loan amounts could go up to $6,000,000 (case by case)
  • First mortgage on owner occupied and investor commercial properties

Credit Approval Criteria

  • First lien position on commercial real estate
  • All loans fully amortizing (no balloons) up to 25 years for multi-use properties, up to 20-25 years for special use properties, 15 years for car washes
  • Lender retains 0.50% of the SBA 504 first mortgage loan fee for the SBA "fee" on direct funding situations

Cash Flow/Debt Coverage

  • Minimum DSC of 1.20x on all existing and proposed debt as of last FYE

Loan to Value

  • (*) Multi-use <= 90% SBA 504 (warehouse, manufacturing, office, retail, medical office)
  • (*) Multi-use <= 75% (warehouse, manufacturing, office, retail, medical office)
  • (*) Special Use <= 65% (new auto dealers, automotive repair shops, grocery stores, funeral homes)
  • (*) Special Use <= 60% (restaurants, daycare, car washes, assisted living centers, etc.)
  • (*) Hotels/Motels Up to 85% with SBA Companion. Stand Alone LTVs up to 65% for newer, flagged, interior corridor properties with fewer than 100 rooms and a minimum 1.4x DSC for the past two years <= 55% on most older properties (according to Lender's valuation method)
  • (*) Gas Stations <= 50% (according to Lender's valuation method)

Investor Properties

The eligibility criteria for investor loans are the same as for owner occupied loans for collateral, maximum loan amounts, pricing, and LTVs. Differences are as follows:
  • Minimum 20% equity of the lower of purchase price or appraised value
  • No gas station/c-stores or car washes
  • Borrowers must be current or previous owners of investor properties
  • Minimum 1.2x DSC for past two years
  • 20 year maximum maturity and amortization

Call for detailed eligibility, underwriting, and valuation criteria.
Start-Up Businesses

  • Prior industry management and ownership experience
  • 20% equity of hard project costs plus working capital and inventory
  • Outside sources of cash flow to service > 30-50% of proposed debt

Non-Eligible Properties

Ground leases, 1-4 family residential properties, mobile home parks

Availability: Nationwide

Apply for a Small Wholesale Commercial Loan

(*) LTVs could be higher if loan qualifies and is done with a SBA 504 companion.