Commercial Line of credit
FAQ
If you are not doing a full appraisal how
do you determine property value?
We do a desktop evaluation and a physical inspection of the
property. To ensure an accurate description of the property for
our evaluation, we need to work with you to complete a detailed
property characteristics worksheet. This worksheet is completed
after the application has been conditionally approved.
What closing costs does do I have to pay?
There is no separate fee for appraisal. The 1% includes
title/escrow (on refi/equity only). The fee is collected when
the loan funds and can be paid from proceeds.
• On fixed loans the borrower can reduce interest rate by
.35% by adding another 1% loan orginantion fee. On equity loans
the borrower pays 1% to the lending bank and 1 -1.5% orgination
fee to us.
• On purchase transactions a $500 loan origination fee
deposit is due upon acceptance of the loan terms and is applied
to the borrower's 1% loan origination fee.
• If the state or other taxing authority imposes a tax or fee
on the filing of a mortgage or deed of trust, the tax or fee is
the borrower's responsibility.
• Environmentally sensitive properties require environmental
insurance, if applicable the fee is the borrower’s
responsibility.
What commercial real estate loan terms do
you offer?
Fixed and adjustable loans and lines of credit are
available with the following terms:
• Fixed:
5, 7, 10, 15; 25 due in 10 and 30 due in 5
• Commercial Equity Line
of Credit (CELOC)
• Line/Loan Combo
What caps apply to your adjustable loans
and your commercial lines of credit?
There are no caps.
What is the typical margin on your
commercial line of credit?
Generally, .05 - 3.5 margins are found on lines of credit.
Do you offer interest-only payment terms?
Yes, on lines of credit.
How long can the borrower use the
commercial real estate credit line?
In most states our lines are "evergreen"; that means the credit
line remains open as long as payments are made on time, you do
not exceed your credit limit, and you are not otherwise in
default.
What is the annual fee on a commercial
line of credit?
The annual fee on a commercial line of credit varies with the
line amount.
• Fee is 0.25% per year based on line commitment. Fee is
waived the first year.
• Minimum $250
• Maximum $1,000
Do you do commercial loans vested in the
name of a trust?
Yes. We will lend to the trustees of the trust when a property
is vested in a trust. Our program does not lend to the trust but
to the trustees.
Will you do a second behind a private
party first?
Yes.
Will you subordinate a commercial loan or
line to second position after it has been closed in first
position?
No, we will not move a commercial loan or line from first
position to second position after a deal has been closed.
However, if we close a loan in second position, and then the
first is refinanced, we will likely resubordinate our original
second position.
What percent of occupancy do you consider
to be "owner-occupied"?
If the borrower occupies at least 51% of the available square
footage the property is considered owner-occupied.
What credit bureau do you use for
determining a borrower’s credit-worthiness?
We typically run a single report from one of the three major
providers. We do not use a tri-merge report.
Do you do environmentally sensitive
properties?
Yes. We can do first liens on a variety of environmentally
sensitive properties as long as we can obtain environmental
insurance. We cannot go in second lien position on environmental
properties.
Does your product have a pre-payment
penalty?
Yes. There is a pre-payment penalty on fixed-rate loans:
Years:
1-2 3%
3-4 2%
5 + 1%
There is an early closure fee on adjustable loans and lines of
credit. The fee is $1,500 if closed within the first three years
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