What 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
• ARMs: 5, 10, 15; 25 due in 10 and 30 due in 5
• Commercial Equity Line of Credit (CELOC)
• Line/Loan Combo
What is your Best Rate/Fee Guarantee?
We will match any comparable offer from another lender based on the combination of rate, closing costs and fees or we'll pay the borrower $200.
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, 1.25 - 4.25 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 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 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 and lines in second position?
Yes. We are one of the few lenders who will do equity loans and lines on commercial real estate.
Will you accept a second position behind a negative amortization first?
No.
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 loan or line to second position after it has been closed in first position?
No, we will not move 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.
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 and/or your borrower to complete a detailed property characteristics worksheet. This worksheet is completed after the application has been conditionally approved.
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 unless the first lien is with Wells Fargo.
Does your product have a pre-payment penalty?
Yes. There is a pre-payment penalty on fixed-rate loans; but you will find it to be one of the most competitive in the market.
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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