Commercial Loan Application Process

How to Prepare a Financial Package for a Commercial Construction Loan

Keep in mind that each Lender has it’s own specific guidelines and that commercial construction loans take quite a bit of diligence before they are approved. This is only meant to be a general list of the items you should consider preparing in advance of contacting Lenders for an investment construction loan*:Project Executive Summary, including schedule of Sources & UsesStatus of entitlements and permits (regulatory letters, if available)Resumes for Architect, General ContractorAIA bid submission, if availableFeasibility/market studyMarketing planList of all Sponsors (including spouses) with at least 10% ownership in the propertyPersonal financial statement (PFS), including a schedule of ...

Read More

FHA Apartment Loan Application Process

The Federal Housing Administration (FHA) Division of the US Department of Housing and Urban Development (HUD) offers government-insured loans for multifamily properties with experienced (and patient! ) investor/owners. It also offers loans for healthcare facilities (i. e. hospitals and residential care facilities) as well as special needs facilities for the elderly or disabled. Although FHA apartment loans have longer closing times and higher fees than any other mainstream multifamily product, this is a strong go-to product for long-term investors with large loan requests because of the long fixed term and amortization, non-recourse structure, low interest rates, and high leverage point...

Read More