Commercial loans

[Jerry Johnson]

Is it true commercial loans for 30 years are not approved ?

[Albert Bui]

Originally posted by @Jerry Johnson:

Is it true commercial loans for 30 years are not approved ?

 It depends on what you mean by "30 years," and "approved."

Do you mean 30 years amortization or 30 years term (need both to be considered 30 year fixed).

There are 30 year fixed commercial multi-family paper but the prepays/defeasance/yield maintenance usually is huge if you decide to sell or refinance so you'll have to determine if this one is a keeper or not =D.

There are 35 year fixed FHA/HUD loans for multi-family too that lend up to 85% LTV but is a huge advantage since the rates are in the low 3's and even with the mortgage insurance componenent its in the high 3's to low 4's which is still lower than the 7-10yr Fannie money which is around 4.50% right now. The main downside with these is I hear they take 6 months to fund so its best to use these for post acquistion take out financing where by you use bridge/hard money/cash or other financing to acquire but then refinance into FHA paper on the back end to payoff or take out the initial money used.