MORTGAGE BANKERS specializes in Construction Loan programs. A sound financing strategy is the foundation for your building plans, and a construction loan is your blueprint to navigating all phases of the building process. It lets you take financial control of the whole project, and because you are the borrower, it's you - not the builder - who benefit from the tax deduction.

Once construction is completed, there's no need for another closing/ settlement (with certain loans, you may be required to sign a "Modification Agreement". Some third party fees may apply). And no additional mortgage lender fees are required when you convert your construction loan to a permanent mortgage.

CONSTRUCTION LOAN PROGRAMS

LOAN AMOUNT:  $500,000 TO $12,000,000

PRODUCT TYPE

INDEX

MARGIN

TERM

EQUITY REQUIREMENT

LAND DRAW

LOAN FEE

MINI-PERM

Multi-Family, Retail, Industrial, Office, Residential Tract, SFR custom, Build-to-Suit

Floating rate over Prime Rate

1.00% - 2.00%  (pricing subject to project risk)

12 months – 24 months (term can be customized to project)

15% - 30% (based upon strength of project and/or developer)

Up to 50% on a case-by-case basis

1.00% - 2.00% (pricing subject to project risk)

Mini Perm Available

 

ACQUISITION / REHAB LOAN PROGRAMS

LOAN AMOUNT:  $500,000 TO $12,000,000

PRODUCT TYPE

INDEX

MARGIN

TERM

LOAN TO VALUE

DSC

LOAN FEE

PREPAYMENT

Multi-Family, Retail, Industrial, Office, Other

Floating Rate over Wall Street Prime or six-month Libor

1.00% - 2.00% over WSP or

300 bps – 400 bps over Six-month Libor (price subject to project risk)

12 months – 36 months (term can be customized to project)

75% Loan-to-Acquisition Cost, Reimbursement up to 75% of rehab costs not to exceed 75% Loan to Stabilized Value

1.15:1 to 1.30:1 DSC based upon product type (any variance subject to project risk)

1.00% - 2.00% (pricing subject to project risk)

1.00% for the first three (3) years, none thereafter

 

PERMANENT LOAN PROGRAMS **

LOAN AMOUNT:  750,000 TO 7,500,000

(Subject to investor’s approval)

PRODUCT TYPE

START RATE

FLOOR & LIFE CAP

TERM

LOAN TO VALUE

QUALIFYING RATE & DSC

FEES

PREPAYMENT

Apartments

300 bps over the 11-District Cost of Funds

Floor is 7.00% and Life Cap is 12.75%

30-year amortization with a 30-year call

Up to 75% Loan-to-Value

Qualifying rate is 1.00% over fully indexed rate with a minimum DSC of 1.15:1

1.00% - 1.50% plus $1,500 processing fee.  Also, phase I Environmental Report required.

None

** OTHER LONG TERMS FIXED AND ADJUSTABLE RATE LOANS AVAILABLE ON VARIOUS PROPERTY TYPES.  CALL FOR QUOTE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual loan rates and terms are based on an analysis of the specific characteristics of the property, such as its type, location, operating history, use, age and construction, as well as the borrower’s financial strength and management experience.  Programs are subject to change without notice.

  DOCUMENTS REQUIRED:

1.       Borrowing Entity – Include recording partnership agreement and/or Articles of Incorporation.

2.       Financial Statement – Complete, and current within three months on all borrowers, guarantors, general partners etc.  Include detailed schedules for all major items and a real estate schedule.

3.       Tax Returns – Complete Federal Tax Returns for the three most recent years, all borrowers, signed.

4.       Credit Information – Name, spouse’s name, home & business addresses and phone numbers and social security numbers for all individuals.

5.       Banking References – Three or more for your deposit relationships and past real estate lenders.  Include the officer’s name, branch address and phone number.

6.       Project Resume – Listing of previously completed projects.  Include type, location, sales or leasing information.

7.       Preliminary Title Report.

8.       Construction Contract.

9.       Contractor’s Information – Contractor’s license number, resume, references and financial statement.

10.   Plans and Specs.

11.   Itemized Cost Breakdown – By subcategory and dated.

12.   Development Schedule – Projected timing for building permits, completion date, sale or leasing period.

13.   Project Proforma Statement – Income and Expense projections and estimated value upon completion.

14.   Market Study – Sales and/or rental comparables.

15.   Soils Report.

16.   Phase I Environmental Report.

17.   Project Contact – Name and phone number of managing partner.