ICS Commercial Mortgage Loans – Multifamily Loans

 

 

 

OUR LOAN PRODUCTS

Long-Term Loans | Short-Term Bridge | Rehab | Ground-Up Construction

Loan sizes starting at $300,000 up to $100MM+

 

 

 

ICS provides long-term, short-term, rehab and ground-up construction loans at the Institutional and Private level. Our Institutional lenders included Banks, Credit Unions, Fannie/Freddie Mac, CMBS, Life Companies, SBA, and FHA lenders. Loans that don't meet Institutional underwriting guidelines are funded through our Private lending channel.

 

LOANS WE DO NOT FUND

 

 

 

No seller financing allowed

No loans under $300,000

No residential owner-occupied home loans

No International Lending

ICS does not fund loans outside of the 50 United States. We do not fund loans internationally, and we do not fund loans in U.S. Territories, such as Puerto Rico, American Samoa, Guam, and the Northern Mariana Islands.

 

 
 

PROPERTY TYPES FINANCED

 

 

  • Multifamily 5+ Units

  • Senior Housing 5+ Units

  • Student Housing 5+ Units

  • Mobile Home Parks

  • RV Parks

  • Office

  • Retail

  • Industrial

  • Mixed-Use

  • Medical Buildings

  • Duplex

  • Triplex

  • Fourplex

  • Single Family Rentals

  • Single Family Developments (SFR, Condo, Townhome)

  • Assisted Living

  • Automotive

  • Cannabis

  • Church

  • Gas Station / Car Wash

  • Hotel

  • Vacant Land / Agricultural

  • Land / Non-Rural

  • Marina

  • Youth Housing

  • Restaurant / Bar

  • Self-Storage

  • Specialty Use

ICS provides financing for investment (income properties), business owner-occupied financing for owners that run their business from the location, as well as rehab and ground-up construction financing for business owner-user properties, and properties that are going to be rehabbed or built for resale. If you don't see the property type you are looking for here at ICS, often times that property type will fall under the "Specialty Use" asset type.

LONG-TERM PERMANENT LOAN PURPOSE

Stabilized income producing property purchase and refinance transactions as well as business owner-user properties. Cash-out is available.

PROPERTY TYPES

All property types are considered for Long-Term Permanent loans, including but not limited to 1 to 4-Unit Rental Properties, Multifamily 5+ unit properties, Manufactured Home Communities, Office, Retail, Industrial, R&D Flex, Self-Storage, Hotel/Motels, Gas Stations, Automotive & More.

LOAN SIZE LIMITS

Minimum Loan Size: $300,000

Maximum Loan Size: $100,000,000+

ICS services capital requests from $100,000 to over $100MM.

FIXED TERM

5 - 30 Years

Common Loan Programs / Customizable

5-Year Fixed, 30 Year Term, Semi-annual rate adjustment for 25 years

7-Year Fixed, 30 Year Term, Semi-annual rate adjustment for 23 years

10-Year Fixed, 30 Year Term, Semi-annual rate adjustment for 20 years

15-Year Fixed, 15 Year Term

30-Year Fixed, 30 Year Term (1 to 4 -Unit Residential Only)

AMORTIZATION

15, 25, 30 & Interest Only

RATES

Rates are based on location, building quality, DSCR, and leverage. In most cases, long-term permanent loan rates are based of the 5, 7, and 10-year treasury + lender spread.

MAX LOAN-TO-VALUE

Multifamily 5+ Units 75% to 80%

Commercial 70% to 75%

Residential Investment 1-4 Unit 80%

Minimum Debt Service Coverage Ratios

1.20x on Multifamily & Commercial

As low as 0.75x on 1 to 4-Unit Rental Properties

Maximum LTV is determined by using the DSCR calculation, which is annual net operating income divided by annual mortgage payments using the estimated interest rate. See DSCR calculator.

PREPAYMENT PENALTIES

Permanent loans include a prepayment penalty in almost all cases. Prepayment penalties can be customized in alignment with the hold and exit strategy for the property. ICS structures various step-down prepayment penalties.

FEES / POINTS

0% to 2%

Points vary based upon property location, loan size, property type, income, and borrower financials. No point loans can be structured on select properties.

CLOSING TIME-FRAME

45 - 60 Days

Loans are typically closed in 4 - 8 weeks from application depending upon the property type, size, and loan type.

FULL APPRAISAL

A full appraisal is usually required for most ICS permanent loans. In some cases, we can waive the appraisal if an appraisal has been completed within 6-months by a qualified and approved appraiser.

DOWN PAYMENT

Down payment purchase funds must be verified via bank/investment statements. 20% to 30% down is standard for multifamily and 1 to 4-unit residential properties. 25-40% down is common on all CRE properties. In all cases, the required down payment is directly associated by the DSCR based on the proposed interest rate, NOI, and loan amount. SBA loans have a minimum down payment of just 10%, but are only available for business owner-user properties.

CUSTOMIZATION

Recourse and non-recourse available. Additional income property types considered on a case-by-case basis. Underwriting deposits may be required depending upon property location and deal type. Terms and conditions are subject to change prior to final loan commitment.

RESERVES

Permanent loans require cash reserves greater or equal to 6-months of mortgage payments.

Permanent Financing

Long-term permanent loans typically have a maturity period of 25 to 30-years. In real estate projects, permanent financing is obtained after completion of construction, rehab, or the property has been leased-up to a point where net operating income supports standard bank debt service requirements. Permanent loans offer lower rates with longer terms, but do required properties to be stabilized, with fair to good credit borrowers. Permanent loans are used to pay-off short-term bridge loans, rehab, and ground-up construction loans.

SHORT-TERM BRIDGE LOAN PURPOSE

Stabilized and unstabilized income producing property purchase and refinance transactions as well as business owner-user properties. Cash-out is available on refinance loans.

LOAN SIZE LIMITS

Minimum Loan Size: $300,000

Maximum Loan Size: $100,000,000+

ICS services Short-Term Bridge Loan capital requests from $100,000 to over $100MM.

TERMS

1 to 3-Years

Fixed & Variable Rates

Interest Only

Asset-Based

RATES

Based on Prime or SOFR

Rates are based on location, building quality, and leverage.

MAX LOAN-TO-VALUE

Multifamily 5+ Units 75%

Commercial 70%

Residential Investment 1-4 Unit 75%

Debt Service Coverage Ratio

Varies by Project

PREPAYMENT

Bridge loans typically do not have a prepayment penalty.

FEES / POINTS

1% to 5%

Points vary based upon property location, loan size, property type, income, and borrower financials.

CLOSING TIME-FRAME

7 - 21 Days

Loans are typically closed in 7-21 days from application and receipt of all documents.

APPRAISAL OPTIONS

A full appraisal is usually required at this time unless an appraisal has been completed by a nationally recognized appraisal company within the last 6-months. In some cases the appraisal may be waived depending upon the funding lender.

DOWN PAYMENT

Down payment purchase funds must be verified via bank/investment statements.

CUSTOMIZATION

Recourse and non-recourse available. Additional income property types considered on a case-by-case basis. Underwriting deposits may be required depending upon property location and deal type. Terms and conditions are subject to change prior to final loan commitment.

Reserves

Bridge loans do not require cash reserves in most cases.

What is a Bridge Loan?

A bridge loan is a short-term loan used by a real estate owner until they secure permanent financing or sell the property. This type of financing allows the property owner to meet current obligations by providing immediate funds. The loans are short term, interest only, typically 1 - 3 years, with relatively high interest rates at 2% to 4% above the Prime Rate.

 

REHAB & GROUND-UP CONSTRUCTION LOANS

 

1 to 3-Year Fixed & Variable Interest Only Construction & Rehab Loans

Loan is fixed or variable for up to 3-years with interest only amortization. Loan is due at the end of the 1 to 3-year term. No prepayment penalty in most cases. Eligible properties include multifamily 5+ units, 1-4 unit residential, condos, office, retail, industrial, manufactured housing, self-storage, hotels, and healthcare. ICS Construction & Rehab Loans are short-term interim loans designed for new construction and major rehab projects prior to securing long-term financing or disposition.

Understanding Loan-to-Cost Ratio

LEVERAGE

  • Ground-Up: Max ARV: 65% - 70%
  • Max LTC: 70% - 80% | Build Cost: 100%
  • Min Credit: 650
  • Rehab: Max ARV: 75% | Max LTC: 85% | Build Cost: 100%
  • Min Credit: 650

LOAN SIZE LIMITS

Minimum Loan Size: $300,000

Maximum Loan Size: $100,000,000+

ICS services rehab and ground-up construction capital requests from $100,000 to over $100MM.

EXPERIENCE

  • Prior construction / rehab experience highly preferred.

PROPERTY TYPES

  • All property types are considered for rehab and ground-up construction loans, including but not limited to Multifamily, office, retail, industrial, mixed-use, specialty use, 1-4 unit residential, and more.

OCCUPANCY TYPE

  • Owner occupied residential developments, investment properties, commercial owner-user.

LIQUIDITY

  •  Minimum 10% of total project budget + minimum 6-months interest reserves

AMORTIZATION

  • Interest only

RESERVES

  • A reserve account will be used to make monthly payments on behalf of Borrower until construction phase is finished and property is ready for take-out financing.

BUILDER

  •  Must be approved by lender.

REQUIRED DOCS FOR INITIAL LOAN REVIEW

  • Sponsor resume / track record
  • Sponsor personal financial statement
  • Project scope of work / budget
  • Builder resume / track record
  • Schedule Real Estate Owned

 

CUSTOMIZED LOAN STRUCTURING

 

NOT EVERY LOAN IS THE SAME

While we offer dozens of different loan products for short-term, long-term, rehab, and ground-up construction loans, not every loan is the same. We have the ability to customize and structure loans based upon the specific short-term and long-term strategy for the property. For example, in some cases we can build in an interest reserve to cover mortgage payments through the ground-up construction period, or on long-term permanent loans, we can build in an interest only period ranging from 1 to 5-years. In short, every loan product can be customized, including rate, term, maturity, etc.