Commercial mortgage loan details.

These are the details for the Commercial Loan portion of our Combo Finance Program

Commercial mortgage loan process.

Our processor gathers the following property information required for a commercial loan request for the property that you have chosen;

• Executive summary
• 2 years and year to date income and expense statements
• Lease summary/rent roll
• Subject photographs
• Purchase contract

You approve our fee agreement. -

By approving our Fee Agreement, you show good faith to work with us and put us to work to secure your loan.

You set up an appointment for our processor to complete your loan request forms. –

Our processor will speak to you on the phone to gather your personal information, complete your loan request forms, ask you to provide certain documentation if necessary and then process your loan request.

We submit your loan request package -

We will process your information and the property data, make the necessary underwriting adjustments and then submit your loan request to our lenders.  

You select your lender and loan program –

Our lenders will respond by offering you loan quotes. Each quote will provide a schedule of loan terms and conditions that you must meet as well as schedule of lender fees and expenses that will be due on application and at closing.

The lender processes your loan –

The lender who's quote you choose will then do the necessary due diligence to ensure that the loan conditions are met before issuing you with a final approval.

Your loan closes.        

Once you have received your lender's final approval, you will proceed to closing. Funding is typically available within"  30 to 45 days from the date of receiving your loan request.

 Frequently asked questions and answers.

Is the commercial loan a full doc or stated program? It depends on a few factors. The first factor is the LTV of the commercial loan portion that you will require. The LTV in turn depends on the purchase price of the property and your available down payment which in turn depends on the amount of the business credit line that you can qualify for. High LTV commercial loans usually require tax returns and an income statement from applicants. Other factors are the property type and its cash flow as well as your FICO score and net worth. The full document requirement is reduced by the strength of these factors.

How much personal income do I need to qualify? The income and cash flow of the property usually qualifies for a commercial loan. However your personal income will determine the amount of the Business Credit Line is part of our Combo Finance Program. See income details for business lines of credit.

How do I decide between 15 and 30year amortization? You can choose the 30year option if you would like to have more cash flow to work with.  

Does the loan balloon after the initial term? No, after the initial fixed period the loan becomes an annual adjustable loan based on the index and margin.

Is this interest only? No the loans are not interest only.

What is the rate? The rate will vary depending on the property’s strength and also the index that will be used at the time of application. The rates are usually between 7% and 9%

What LTV will I qualify for? The LTV depends on the purchase price of the property and your available down payment which in turn depends on the amount of the business credit line that you can qualify for.

Does the down payment need to be seasoned?  Some of our commercial loans require a two month seasoning of the down payment and the escrows.   High LTV commercial loans usually require the down payment and escrows to be seasoned. Other factors are the property type and its cash flow as well as your FICO score and net worth. The seasoning requirement is reduced by the strength of these factors.

What are escrows?  Escrows will be collected at closing to pay for the taxes and insurance when it becomes due.  

Is the interest rate of the loan linked to my credit score?  No

Does the interest rate vary per property type?  No

Will a high FICO score make it easier for me to get approved? Yes.

Do I apply in my personal name or in the name of my business? You can apply in your personal name or your corporation name. Either way you will still be required to be the personal guarantor of the loan.

How much are your fees for brokering the loan? Our charge to originate a secured commercial loan for our Combo Finance Program is 2%.

Does the lender charge points?  Yes, the lender charges between 1 and 2 points depending on the property type and its cash flow as well as your FICO score and net worth.

Are there any up front fees involved and if so when must they be paid? Lenders charge for appraisals, surveys, legal fee, environmental and due diligence fees. These fees are usually detailed on the lender’s quotation and are required to start the application process if and when you accept the quotation. Any fees not used will be credited back to you at closing.

What about pre payment penalties? Prepayments penalties are usually payable to the lender if you pay the loan off before the end of the loan term. The penalty is fixed declining. Example: For a 5 year loan term the prepayment penalties will be as follows: 5% - Yr 1,    4% - Yr 2,    3% - Yr 3,    2% -Yr 4    and 1% in Yr 5.

Is this a fixed loan or a variable loan? The loan is fixed for the initial loan term and then becomes a 1 year adjustable loan.

If this is a variable loan, how does it work? When the loan is closed the lender charges you a margin (points) which is added to the index to calculate the interest rate (Example: A 4.5% index + a 2% margin = 6.5% loan rate). When the rate adjusts after the initial fixed loan period the index rate will determine the new rate but the margin will always stay the same. Every year the loan rate for that year will be determined by the index at the time of the adjustment PLUS the margin.

            How do I get started with the 100% Combo Finance Program? Firstly follow this link to apply for your unsecured business lines of credit. The application is free and you are not
            obligated to anything.

            I already have my own funds for the down payment. How do I apply for the commercial loan portion of the program only? Request a loan consultant to contact
          you. 

Disclaimer

All information contained here in has been obtained from sources deemed reliable. However, NetPropUSA.com LLC or any agent thereof cannot guarantee this information. We are not responsible for errors omissions, prior sale, change in price, easements, zoning changes or withdrawal of this property from the market without notice.