KEY PROGRAM FEATURES
Clearly not all of the best or most desirable in each key feature category are available in each and every product solution. Our mission - however - in understanding our clients Needs and Objectives - is to create - to the fullest extent possible - a custom (optimum) solution for each.
For your understanding and consideration - here are what we consider to be the key features of any commercial loan:
- Documentation Types - Full, Stated, No-Doc; (full documentation will always yield the best loans and is often easier to qualify for than on residential loan formats).
- Credit Status - Good and not-so-good. Good is always best. Conventional solutions and private money are available for challenging scenarios.
- Rates - Ranging from the high 5s and low 6s (for multis - dependent on Loan Amount, etc.)...to low to mid 7s for the most qualified commercial borrowers and properties.
- Terms - 1, 3, 5, 7, 10, 15, 20 and 30 year fixed terms are generally available.
- Amortization Schedules - 15 year (self-liquidating), 20, 25 and 30 are generally available.
- LTVs - The best loans allow for a maximum of 80% LTV for purchase and 75% LTV for re-financing . 90% and even 95% LTVs are available - with hits to the rate and generally more stringent PPPs .
- Debt Service Ratio (DSCR) - 1.2 - 1.25 or better generally secure optimum rates and terms.
- Assumability (to a qualified borrower) - Offered by ~ 50% of our lenders
- Non-Recourse - offered by ~ 50% of our lenders and generally based on low LTV and high FICO
- Pre-Payment Penalties (PPPs) - From NONE to step-downs (3, 5, 7, 10, 15) and on to yield maintenance and defeasance
GMG Commercial hopes you've found this information to be helpful and we encourage you to take 60 seconds to complete our "Quick App" - which will allow us to begin to understand your specific scenario and objectives...and further serve you.
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