Major Property Loans
Major property loans consist of projects that are INCOME PRODUCING PROPERTIES from the source of rents or leases, such as:
- Office buildings
- Shopping centers
- Hotels/motels
- Industrial buildings
- Mobile home parks
- Apartments
- Health care facilities
- Medical office buildings
- Etc.
- The amount of the loan requested is not more than 75% to 80% of the appraised value of the project, or 75% to 80% of the purchase price (if being purchased) whichever is lower.
- For example, if an apartment is appraised at $1,000,000, the maximum loan is usually not more than $750,000, but if the apartment is being purchased for only $900,000, the maximum loan would only be 75% of $900,000 (which would be $675,000). Since $675,000 is the lower of the two, that will be the maximum loan amount possible.
- If purchasing the apartment, is doesnt mean that you would have to come in with 25% of that value in cash, but should have at least 10% of the $900,000 in cash and the balance of the 15% may be carried back as a second by the seller of the property.
- The barrower has a total net worth of at least the same amount, or more, than the amount being borrowed. Also that the project produces sufficient net operating income per year to service the loan at a 1.20 debt service coverage ratio.
Annual Net Income $_____
--------------------------------------- = 1.20
Annual Debt Service $____
- Required documents:
- Loan Summary Worksheet
- Purchase Agreement (if being purchased)
- Major Property Worksheet
- Resume of principals
- Financial Statement of principals (dated and signed within the last 90 days) Attach Schedule of Real Estate Owned form (if needed)
- Last 2 years complete personal tax returns
- Current Financial Statement of corporation or partnership (if applicable)
- Profit and Loss Statement
- If multi-family (apartment), include a Rent Roll (a list of all tenants and monthly rents)
- Project lease information (if property is leased)
- Name
- Rent
- Term
- Sample of Lease
- M.A.I. Appraisal (an original appraisal dated within the last 6 months, including color pictures)
- If ground is leased, copy of lease and Subordination Agreement
- Signed Fee Agreement
- Sample Programs:
| Loan Type | Property type | Loan Amount | Loan To Value | Debt Service Ratio | Loan Term | Amortization | Interest Rate | Comments |
| Fixed | Prime Income Producing Properties Apartments, Office & Medical Buildings, Shopping Centers, Etc. | Up to $250,000 | 75% | 1.20 | 5 years | 25 years | 6.0% - 7.25% | Rate and loan fees depends on size of loan |
| Fixed | Prime Income Producing Properties | $250,000 to $2 Million | 75% | 1.20 | 10 years 5 & 5 |
25 30 years | 5.0 6.0% | Major metropolitan areas only |
Fixed |
Prime Income Producing Properties |
$2 Million and up |
75% |
1.20 |
10 years |
25 -30 years |
4.75 5.75% |
Major metropolitan areas only |
Adjustable |
Prime Income Producing Properties |
$500,000 and up |
75% To 80% |
1.05 To 1.15 |
15 years |
20 30 years |
4.5 5.5% |
Major metropolitan areas only |
Fixed |
Other Income Producing Properties Mini-Warehouses, Mobile Home Parks, Hotels, Motels, Health Care Centers, Etc. |
ALL |
75% |
1.20 |
5 years |
25 years |
6.25% - 7.5% |
Major metropolitan areas only |
Adjustable |
Other Income Producing Properties |
ALL |
75% |
1.20 |
10 years |
25 years |
6.0 7.0% |
Loan under $500,000 may be higher interest rate |
To get started:
Print the following worksheets from the Printable Forms page. Fill them out then fax or mail it to us. Please inform us of its arrival.
- Loan Summary Worksheet
- Major Property Worksheet
