Conduit Loans - Conduit Financing
Commercial Loan Direct offers conduit loans nationwide. CLD's conduit loan financing options are specifically tailored for multifamily and commercial real estate transactions. The CMBS or Commercial Mortgage Backed Securities market offers competitive finance pricing and flexibility. Conduit loans are usually non-recourse.
Conduit loans have been part of a trend in the Investment Banking industry to become more "vertically integrated". That is, instead of helping banks and other lenders to provide fix rate products and replenish funds by selling off loans as bonds, investment banks have taken to making the loans themselves, and then selling the bonds themselves. In fact, many times the Investment Banks make little or no money on the loan itself, and only make money by the selling and trading of bonds. For this reason, these forms of loans are usually at a better interest rate than is possible through other forms of Bank lending.
Like most residential mortgage loans that are sold as bonds to bond investors, investment banks usually create multiple classes (known as 'tranches') of bonds based on the same pool of mortgages. The tranches might be ranked so that the 1st class takes all of the losses on the mortgage loans up to a certain point in exchange for having a higher interest rate paid to them. The second class may only take losses when the losses reach a certain point for the first class of bondholders, in exchange for a lower interest rate. In this way one set of mortgages could be used to create bonds that appeal to a wide range on investors.
Conduit Loan Financing options:
Apartment Conduit Loans - Small Balance
Multifamily Mortgages: $1 Million - $5Million- Pricing: Fixed interest rates priced at competitive spreads over comparable maturity U.S. Treasury
- Term: 5 - 20 years
- Amortization: 30 Years Maximum
- Prepayment: Multiple options
- Loan to Value Ratios: 80%
- Assumable
- Recourse: Non-recourse
- Property Types: Multifamily - Apartment buildings having 5 or more units
- Availability: Nationwide
Learn more about our Small Conduit Loan Apartment program
Apartment Conduit Loans - Mid Balance
Multifamily Mortgages: $5 Million - $25Million- Pricing: Fixed interest rates priced at competitive spreads over comparable maturity U.S. Treasury
- Term: 5, 7, 10, 15, 20 years
- Amortization: 30 Years Maximum
- Cash Out: Permitted
- Prepayment: Multiple options
- Loan to Value Ratios: 80%
- Assumable
- Recourse: Non-recourse
- Property Types: Multifamily - Apartment buildings having 5 or more units
- Availability: Nationwide
Learn more about our Mid Conduit Loan Apartment program
Apartment Conduit Loans - Large Balance
Multifamily Mortgages: $2 Million - No Maximum- Pricing: Fixed interest rates priced at competitive spreads over comparable maturity U.S. Treasury
- Term: 5, 7, 10, 15, 20 years
- Amortization: 30 Years Maximum
- Cash Out: Permitted
- Prepayment: Multiple options
- Loan to Value Ratios: 80%
- Assumable
- Recourse: Non-recourse
- Property Types: Multifamily - Apartment buildings having 5 or more units
- Availability: Nationwide
Learn more about our Large Conduit Apartment loan program
Conduit Commercial Loans
Conduit Loans - Small Balance
Commercial Mortgages : $1 Million - $5Million- Pricing: Fixed interest rates priced at competitive spreads over comparable maturity U.S. Treasury
- Term: 5 - 20 years
- Amortization: 30 Years Maximum
- Prepayment: Multiple options
- Loan to Value Ratios: 80%
- Assumable
- Recourse: Non-recourse
- Property Types: office, retail, industrial, multifamily, manufactured housing, and hotel
- Availability: Nationwide
Learn more about our Small Conduit Financing loan program
Conduit Loans - Mid Balance
Commercial Mortgages: $5 Million - $10 Million- Pricing: Fixed interest rates priced at competitive spreads over comparable maturity U.S. Treasury
- Term: 5, 7, 10, 15, 20 years
- Amortization: 30 Years Maximum
- Cash Out: Permitted
- Prepayment: Multiple options
- Loan to Value Ratios: 80%
- Assumable
- Recourse: Non-recourse
- Property Types: office, retail, industrial, multifamily, manufactured housing, and hotel
- Availability: Nationwide
Learn more about our Mid-Balance Conduit Financing loan program
Conduit Loans - Large Balance
Commercial Mortgages: $2 Million - No Maximum- Pricing: Fixed interest rates priced at competitive spreads over comparable maturity U.S. Treasury
- Term: 5, 7, 10, 15, 20 years
- Amortization: 30 Years Maximum
- Cash Out: Permitted
- Prepayment: Multiple options
- Loan to Value Ratios: 80%
- Assumable
- Recourse: Non-recourse
- Property Types: office, retail, industrial, multifamily, manufactured housing, and hotel
- Availability: Nationwide
In its prequalifying review, Commercial Loan Direct will attempt to estimate both the conduit loan amount and the fees and costs associated with the conduit loan.
Learn more about our Conduit Financing loan programs