What are Alternative Commercial Loans?
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You may have heard of Alternative Commercial loans or Alt-A loans and wondered, what are those? Alt-A loans are loans that just miss the bank type of financing but are too good to be thrown into private money. It is a fast-growing and rapidly expanding part of the commercial mortgage marketplace with new sources coming to market every few months it seems. We intimately understand these loans and have become adept at closing them.
Last week we closed one for a client who could not get bank financing because of an issue with the SBA that prohibited the loan closing (and she needed 80% LTV Financing). The loan came to me from a bank that could not get it done but loved the customer. We got it closed last Monday on an Alt-A loan. HERE ARE SOME OF THE USES OF
THIS TYPE OF LOAN:
- *Loans with NO TAX RETURNS
- *Loans to borrowers with credit down to a 550 score (and at 80% LTV!!)
- *Loans to borrowers with BK or foreclosures after just 2 years (most banks want at least 4)
- *Financing for Foreign Nationals
- *Small loan sizes (apartment loans as small as $200,000 for example, tough to find financing for)
- And much more.....
And with 5 year fixed rates that can run from 6-8%, with longer 30 year amortizations, the pricing is not that bad. Most SBA 7A loans are prime+2.5% which is 7.25% and that is adjustable, these are fixed rates! A 5 year fixed at 7.5% on a 30-year amortization is equivalent in payment to a 20-year bank loan of 5.7%! So the pricing really is not prohibitive, especially for the fact that the buyers will NOT QUALIFY for bank financing. It really is a good loan product. AND CLOSINGS
TYPICALLY TAKE ONLY 35 DAYS! So it is quicker too.
At Commercial
Capital, we have our own private money, and we underwrite for tons of quality low-interest-rate sources from conduit to agency to SBA and conventional. But we also have a full line of alternative lending loans that can work for both owner-occupied businesses and investor properties. If you want a loan closed, we are the ONE STOP SHOP. Give me a call today at 512-354-5949 today or get started by filling out this form!
Karen Schimpf
Commercial Capital, LTD(512) 354-5949karenschimpf at gmail.com
https://www.linkedin.com/in/karenschimpf/
www.ApplyCommercialLoans.com
Give me a CALL TODAY at 512-354-5949 or get started by filling out this form!