|Core Program||Lender||Max LTV||Min Loan||Max Loan||Lender Points|
|Bridge Loan||Private Lender||75%||$25,000||$999,999||3% to 4%|
|Bridge Loan PLUS||Private Lender||75%||$1,000,000||$25,000,000||2% to 3%|
|Permanent Loan||Bank||75%||$50,000||$999,999||0 to 1%|
|Permanent Loan PLUS||Bank||75% to 80%||$1,000,000||$50,000,000||0 to 1%|
|Fix & Flip||Private Lender||85%||$50,000||$5,000,000||2% to 3%|
|New Construction||Bank||80%||$100,000||No Max||1% - 2%|
|SBA Business Loan||Bank||90%||$25,000||$5,000,000||2.50%|
5 Core Loan Programs
Almost all loans funded in today's market will fall under the 5 Core Loan Programs listed above. Banks and private lenders offer a variation of each loan program. In commercial lending, loans can be customized and structured to fit the needs of the specific transaction. ICSLoans lists priced loan requests for lenders to review. Interested lenders then present structured loan options customized for the deal.
Property Types & LTV
Commercial, investment, and multifamily properties include many types. Lender max LTV allowance can vary across property types. For example, most lenders will not lend above 50% LTV on land, while most lenders will lend to 75% on multifamily properties up to $1,000,000, and up to 80% if the loan is being sold to Fannie Mae. Commercial properties including office, retail, and industrial have a max LTV of 70% in most cases, but we see some loans close up to 75%, and 90% on SBA loans. By listing a loan request through ICSLoans, borrowers and brokers can request the terms they need (within reason), lenders compete for the loan, and in many cases, offer better terms than asked for if there are multiple lenders competing for the deal.
Points include all estimated lender points charged to the borrower at closing. 1 point is equal to 1% of the loan amount. On purchase loans, points are paid by the borrower out-of-pocket and due at escrow closing. Lender points can be paid from the loan amount on a refinance.
If a loan broker is involved, the broker usually charges broker points which are charged to the borrower and paid at closing. These points are in addition to any points charged to the borrower by the lender. In most cases, loan brokers charge 0.5% to 1% on bank loans and 1% to 2% on private lender / bridge loans. If no Loan Broker is involved then no points are paid by the borrower to a broker.
Processing & Underwriting Fees
All commercial and investment property loans require a certain level of due diligence depending upon the property type, loan amount, location, and other important factors. Loan processing and underwriting includes document gathering and review, property analysis, market analysis, comp reports, appraisal, BPO, title, tax review, credit review, inspection, and various 3rd party fees. Lenders typically charge an underwriting deposit to cover out-of-pocket expenses incurred to underwrite a loan prior to closing.
Bank loans almost always take 45 to 60+ days to close. Bridge / Hard Money loans can close in less than 30 days, but required a higher interest rate than a bank loan.
Borrowers with credit scores below 650 should not pursue bank loans. Bridge / Hard Money loans are usually the choice for borrowers with credit scores below 650.
List your loan with ICSLoans. That is the best way to figure out what financing is available for your deal. Make lenders compete. It's easy.