agcommercialcapital.com
| Feature | Characteristics |
|---|---|
| Loan amount | $750.000 - 5MM |
| Multi-family & mixed-use | (up to 20% commercial space) |
| Eligible location | $750K to 3 Million. Nationwide except Ohio, Michigan & Louisiana. All other locations must meet minimum population requirement of 50,000 |
| Eligible location | $750K to 5 Million. Major markets included: Baltimore, Boston, Chicago, Los Angeles, New York, Sacramento, San Francisco, San Jose, Seattle, Washington D.C. |
| Loan purpose | Purchase, rate/term refinance & cash out |
| Minimum Fico | 680 |
| Amortization | 25 to 30 years, depending on the age of property and condition |
| LTV | Up to 75 - 80% maximum LTV |
| Loan terms | 30 year fixed and Balloon loan terms of 5, 7, 10 years with amortizing terms up to 30 years |
| Lifetime cap | 5% over initial interest rate |
| Lifetime floor rate | 3% |
| Minimum DSCR | 1.25 DSCR |
| NOI calculation | Deduct market vacany; % management; reparis estimated at $650/unit; reserves estimated at $300/unit |
| Subordinate financing | Not allowed during the first 12 months, thereafter case-by-case, with a minimum loan amount of $250K |
| Stabilization | must be at 90% occupancy for at least 90 days |
| Assumability: | Loans are assumable at Lender consent and a 1% fee |
| Third party fees | $4,500 (for strong/major markets) and $9,500 (all other markets) |
| Tax & insurance escrows | Not required for qualifying borrowers |
| Seasoning | Twelve months |
| Liquidity | 6 months P&I, plus down payment, closing costs and 1:1 coverage ratio of revolving debt |
| Borrower net worth | Must exceed loan amount |
| Non recourse | Lending in some large markets. Recourse in certain markets, subject to the Lender's discretion |
| Feature | Characteristics |
|---|---|
| Loan amount | $500.000 - 7 Million |
| Minimum Fico | 660 |
| Minimum DSCR | 1.30 |
| Maximum LTV | 90% for multi use properties (office, retail, condo, warehouse, medical office, mixed use, light industrial). 85% for special use properties (automotive, assisted living, hotel, motel, restaurant, day care) |
| First Mortgage | First mortgage 50% and Second mortgage up to 40% First mortgage amortized up to 25 years and Second mortgage up to 20 years. Second mortgage rates is fixed for 20 years |
| Must be owner occupied 51%+ to qualify under this program | |
| Loan Purpose | Purchase only |
| Underwriting philosophy | Global Cash Flow Underwriting |
| Closing time | 60 days if complete package |
| Loan programs available | 1. Adjustable (prime plus 2.75%) 2. 3 Year Fixed: Rate starts at 5.5% with 5 year declining prepayment 3. 5 Year Fixed: Rate starts at 6.5% with 5 year declining prepayment (the above two options only apply to the first mortgage) 4. The second mortgage will carry an interest rate of approx. 5.5% fixed for 20 years and amortized over 20 years 5. Seller Financing allowed by, borrower must have Minimum Equity of 10% |
| USDA (B&I Government Guaranteed Loans) | |
|---|---|
| Product overview | Commercial financing for rural business; creating and saving rural jobs, improving economic climate of rural communities |
| Maximum loan limit | $25 Million |
| Minimum loan amount | $1 Million |
| Loan type | Real estate buildings |
| Eligibility | Business purpose in rural areas. Manufacturing, wholesale, retail, service, new or existing. Must be in a rural area, beyond any 50,000+ population city and its urbanized periphery (there are a number of exceptions for which eligibility determination can be verified with a complete address of the subject business of the property). Majority ownership must be held by US citizens or permanent residents. Any ownership of government or military employees must be less than 20% |
| Loan term & amortization | 30 years maximum (not to exceed useful life of collateral) Ballons are not permitted. Reduced payments may be scheduled in the first 3 years |
| Rates | Lender's customary commercial interest rate — fixed or variable (rate may not vary more than quarterly). Rates are tied to prime and ajusted quarterly or can be fixed for 3, 5 or 10 years. Starting in the high 6% |
| Fees | Lenders customary fees USDA charges a one time guarantee fee of 2% of the guarantee amount. The loan guarantee is subject to annual renewal fee of 0.25% on the guaraneed protion of outstanding principal |
| Prepayment policy | Lenders customary pre-payment penalty |
| Feature | Characteristics |
|---|---|
| Product overview | Must be owner occupied 51%+ to qualify under this program |
| Loan amount | from $100K to $2 Million |
| Minimum Fico | 650 |
| Minimum DSCR | 1.25/1.00 |
| Loan purpose | Purchase, refi & cash out. Cash out is only accepted under this program if proceeds are for property improvement, payment of business debt and inventory |
| Loan amortization | 25 years |
| Property types | Car washes, auto repair/transmission/body shop, bowling alleys, medical/dental & veterinarian offices, liquor stores, convenience stores, supermarkets, child daycares, adult daycares, assisted living facilities, restaurants, retail/office condo/mixed use/industrial, self-storage facilities |
| Max LTV | 90% |
| Interest rate | Starts at prime + 2.75% |
| Prepayment penalty | 5% in year 1; 3% in year 2; 1% in year 3 |
| Underwriting philosophy | Global cash flow underwriting |
| Feature | Characteristics |
|---|---|
| Loan amount | from $250K to $5 Million |
| Interest rate | Starting at 5.67% on our 12 month libor ARM |
| Loan term | 12 months libor, 3, 5, 7 & 10 year fixed hybrid. All loans amortized over 30 years |
| Prepayment penalty | 5% declining |
| LTV | Up to 65% for purchases. LTV can be increased to 70% on selected markets |
| Minimum credit score | 680 |
| Minim DSCR | 1.25. This may be increased based on risk of transaction |
| Refinance | Cash out refinance request are typically limited to 50% maximum |
| Upon conclusion of fixed rate terms loans will roll to 6 month ARM with interst rate adjustment capped at 1.00% | |
| Stable current and historic cash is generally required | |
| Borrower must be solid: Market experience, liquidity, net worth, personal credit. Full recourse for at least one key principal required | |
| All programs are subject to pricing adjustment based upon loan size, property condition, age, maintenance and credit indicators | |
| Rates are only for A&B Grade properties | |
| Loans under $500,000 will have a rate spread increase of 35-60 bps |
| Owner Occupied | Non-Owner Occupied / Investor | |
|---|---|---|
| Maximum loan amount | $4,000,000.00 * 65% Multi-use * 60% Semi-generic * 55% Special use Please see Quick Reference Table for property classification |
$4,000,000.00 * 65% Multi-use * 60% Semi-generic * 55% Special use * 55% Unanchored retail Please see Quick Reference Table for property classification |
| Maximum LTV (1st lien) | 25 years | 20 years 25 years * *On Exception Areas |
| Minimum personal credit | 650 - No previous bankruptcy | 650 - No previous bankruptcy |
| Acceptable markets | Urban/suburban areas | Urban/suburban areas |
| Avoid | * Gas station/C-store * Car wash * Auto dealership * Night clubs * Athletic/fitness centers * Special-use start-ups * Assisted living facilities |
* Gas station/C-store * Car wash * Auto dealership * Night clubs * Athletic/fitness centers * Special-use start-ups * Assisted living facilities |
| Preferred characteristics | Multi-use <75,000 SqFt |
* Warehouse * Office * Manufacturing * Medical offices |
| Minimum equity injection | 10% - 25% | 20% |
| Minimum EDSC | 1.20X | 1.40X |
| Management experience | Prior ownership & management preferred | Previous ownership required |
| Minimum prepayment penalty | Declining 5% for years 1-5 | Declining 5% for years 1-5 |
| Reasonable cap rate | 8.5% - 9.5% | 8.5% - 9.5% |
| Other sources of income DSC | If start-up, 1.20X from outside source | 0.25X from outside source |
| Collateral (1st position) | Real property | Real property in all states except AZ, AL, AR, CA, FL, GA, IN, LA, OH, MI, MS & NV. On above mentioned states, the borrower must occupy 25%, in order to qualify |
| Property Type | Max. LTV | Limitations/Approval Requirements |
|---|---|---|
| Generic/Special Use * Generic * Office, warehouse (commercial & industrial) * Light manufacturing & industrial * Retail/mixed retail with office |
65% | Depending on age, quality, location, size and financial strength |
| Semi Generic * New automobile dealers * Light automotive services * Tire and brake centers * Grocery stores * Funeral homes |
60% | Depending on age, quality, location, size and financial strength |
| Special-Use * Bowling centers * Restaurants * Oil/lube centers * School or day care * Golf courses * Dry cleaners * Self-storage |
55% | Depending on age, quality, location, size and financial strength |
| Refinances * Multi-purpose * Unanchored retail and special-use |
65% 55% |
| Feature | Characteristics |
|---|---|
| Loan amount | From $100K to $400K |
| Interest rate | Starting at 7.75% on our Adjustable Program |
| Loan term | 25 year fixed rate with NO BALLOON (only applicable on the Non-Adjustable Program) |
| Prepayment penalty | 5 years declining at 5, 4, 3, 2, 1 on our Fixed Program and 5% flat for 5 years on our Adjustable Program |
| LTV | Up to 70% max for multifamily and other property types. LTV will be reduced based on the transaction risks and credit scores |
| CLTV | Up to 80% |
| Minimum Credit Score | 600 |
| Territory | Nationwide except for Alabama, Alaska, Hawaii, Michigan, Nevada, Ohio, West Virginia, Vermont & Los Angeles county, CA |
| Credit quality | Usually we request mortgage to be current, and must have been rated for 24 months. Mortgage rating must not have more than 1 X (30) days delinquency in the past 12 months. HOWEVER, we will also consider 3 X (30) days and 1 X (60) days delinquencies in the last 12 months period OR 6 X (30) days and 1 X (60) days in the prior 24 months. Please note that interest will be higher |
| Bankruptcies | Generally not allowed in the prior 2 years |
| Charge Offs / Collections | Not allowed in the prior 12 months period. Charge offs over $500 are not allowed in the period between months 13 and 24. Exceptions may be granted with a higher rate |
| Property type | 2-4 Unit, apartments (5+ units), mixed-use, professional office space, retail store - strip/free standing, small commercial, motel/hotel, mobile home park, office/warehouse, church/house of worship, garage/storage/auto, bar with apartments, restaurant, auto repair/auto body |
| DSCR | 1.20 Minimum for multifamily/mixed-use 1.30 Minimum for motel/hotels 1.35 Minimum for retail store/strip, mobile home park, small commercial, office warehouse, church/house of worship 1.40 Minimum for automotive/storage |
| Purchase, rate & term, limited cash out | |
| Investment property or owner occupied | |
| Closing time | 4 weeks typically, if complete package |
| For loans below $250K, DTI ratio is used in lieu of DSCR | |
| Appraisal | Usually 3 approaches will be used to determine property value as follows: 1. Sales comparables 2. Cost approach 3. Income approach Investor bases the final loan amount on the lowest of the three approaches |
| Feature | Characteristics |
|---|---|
| Loan amount | From $250K to $20 Million |
| LTV | Up to 60% max |
| CLTV | May be allowed on a case by case basis up to 75% |
| Loan term | Up to 36 months |
| Minimum Fico required | None |
| Prepayment penalty | None |
| Exit fee | None |
| Interest rate | Starting at 12% |
| Lending | Nationwide lending. NO rural areas (minimum population required 100K) |
| Acceptable property types | Office, medical/dental, office condo, warehouse, multifamily, mixed use, retail, strip centers, assisted living facility, day care, flagged and non-flagged hotel/motel, other property types considered on a case by case basis |
| Interest only payment | Available |
| Closing time | Can close as fast as 30 days with full package |
| Feature | Characteristics |
|---|---|
| Loan amount | From $1 Million to $25 Million |
| LTV | Up to 75% |
| Fixed rates | 3 to 5 years |
| Amortization | 20 to 25 years |
| Transaction type | Purchase and refinance |
| Churches must have audited financial statements |
If you have been frustrated by promises of speed that cannot be kept, quotes that do not hold firm, and false declarations of ability to fund, you will find AG Commercial Capital a pleasure to work with. We stand by our commitment to excellence in commercial loans and financing. Contact us now »
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