Long-Term Permanent Loans
Commercial, multifamily, and investment property Permanent Loans provide competitive rates for stabilized buildings and borrowers in need of permanent longer-term financing.
LONG-TERM PERMANENT LOANS
PURPOSE
Stabilized income producing property purchase and refinance transactions as well as business owner-user properties. Cash-out is available.
PROPERTY TYPES
1 to 4-Unit Rental Properties, Multifamily, Manufactured Home Communities, Office, Retail, Industrial, R&D Flex, Self-Storage, Hotel/Motels, Gas Stations, Automotive & More.
LOAN SIZE
$100k - $100,000,000+
ICS services capital requests from $100k 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
PREPAYMENT
Permanent loans include a prepayment penalty. 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 and loan amount.
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.
