Hey Derek,
Just one program I have for MHPs.
- Drexel Commercial Bank Alt #1
- - Loan Amounts: $100,000- $2,000,000
- Loan Amounts of $2-$5 million, over 2 million are considered on a case by case scenario. - - Property Types: Multi-Family, Mixed-Use, Retail, Office, Warehouse, Self-Storage, and Auto Service (no gas stations or underground gas tanks). Case by case a Mobile Home Park. If I didn’t list the property type here we are probably not lending on it. The only grey area I have is if a bar/restaurant is a tenant in a mixed use building or strip mall, we can possibly do those.
- - The property types this program does not lend on at all: Hotel/Motel, Day Care’s, Adult Living Facilities, Boarding Houses, Funeral Homes, Stand Alone Bars and Restaurants, Gas Stations, Car Wash, Land, anything Agricultural, Manufacturing, Schools, etc.
- - No Gas stations, Day Cares, Restaurants.
- - Loan Purpose: Purchase| Refinance| Refinance Cash Out
- Initial Fixed Rates: 3 & 5 year options - - After the fixed period of the loan, the 3 or 5 year option, interest rate adjusts to: It is wall-street prime which is currently 3.25% plus the margin of 4%. So in 3 years if WSP is the same the rate would be 7.25% (3.25% plus 4%). One thing to keep in mind is the start rate is the floor. If the start rate is 7.99% the rate will never go below that.
- Term: 30 years fully amortized
- Rates: 7.49-9.99%
- Loan to Value: 75% on Multi Family and Mixed Use, All other property types 65% - If borrow wants an all cash out refi lender minuses 5% from LTV, if borrower is also a new borrower (this is there first real estate deal, lender also minuses 5% from LTV).
- Minimum Fico: 650- strict! - - Program allows a seller assist on the down payment of a purchase which will total 3% of the total loan amount.
- - Program allows a seller second to carry up to 80% CLTV.
- Unlimited Cash-out (remember if all cash our refi on free and clear, 5% is taken off of max LTV.) - - Can blanket some commercial properties if they are right next to each other, case by case scenario.
- - Deposit for appraisal is around 3K.
- - Closing costs around $2,300; wrapped into loan amount.
- - An environmental is required for all properties, which costs from $1,500-$2,200; wrapped into loan amount.
- Prepayment Penalty: 5% of the total loan amount, only when loan is in the fixed rate period. - - Multifamily and Mixed Use properties with a loan amount of over $750,000 may possibly be offered a better rate on a case by case scenario.
- Population requirement: City must have a population of 25,000 OR be within 25 miles of a city with a population of 100,000.
- Program offered nationwide…Exceptions: TN, North and South Dakota, and New Hampshire, IL, MI
