Commercial Loans
Firstbanc, primarily originates long-term, fixed-rate, commercial mortgages on multifamily, office, retail, industrial, hotel and many other property types nationally.
Low Balance Commercial Program: From $200,000 To $1 Million
Available Nationwide for Purchase, Refinance & Cash-out
Fully amortized – No Balloon Payment!
Quick closings, typically within 30-45 days
ELIGIBLE PROPERTY TYPES:
Multifamily pricing available for existing apartments and mixed use properties (where at least 50% of the gross income is from multifamily units).
Commercial pricing available for existing office, retail, warehouse, mobile home park, light industrial, and self- storage properties.
INELIGIBLE PROPERTY TYPES:
Gas stations, lube centers, convenience stores, nursing homes, hotels and other hospitality properties, heavy industrial, mechanic shops, churches, ranches/agricultural, raw land. Construction, interim, and rehab deals are not eligible.
Program Details
Credit Qualifications
For the Primary Borrower, the middle score must be 600+, low score must be 560+.
For the Co-Borrower, the middle score must be 580 to be on the application, must be 640 for income to be included in underwriting. Any credit under 580 is not acceptable.
Credit less than 680 for principle borrower may qualify at higher rates.
Guarantee / Recourse
All loans are full recourse to the borrower. Personal guarantees are mandatory for all eligible borrowers including individuals, corporations, partnerships, limited partnerships, limited liability companies, and certain trusts.
Rate Lock
Automatic (free) rate locks on the 6 month adjustable, 2 yr and 3 yr terms.
Optional rate locks on the 7 yr hybrid and the fixed rate programs; $1,000 lock fee due at the time the Term Letter is signed and returned. Lock fee will be credited back to borrower at closing. 1/8% rate and margin increase with rate lock option (7 yr hybrid and fixed rate program only).
Prepayment Penalties
6-month adjustable, 2, 3, and 7 yr hybrid: 5% for the first 5 years
Fixed rate programs: 10%, declining 1% per year for 10 years.
Prepayment may be waived after two years in case of property sale (excluding 6-month adjustable and 2-year hybrid rate plans). This option will require a 1/4% increase in the rate and margin.
3-year Lockout option is available on the 6-month adjustable and 2-year hybrid loan program. If selected, the rate will be decreased 1/4%.
Caps/Floors
Periodic Cap for the 2, 3, & 7 yr programs is 2% for the initial reset and 1.5% thereafter. Periodic Cap for the 6-month adjustable program is 1.50%. Life Cap on all programs equal to the initial fully indexed rate plus 6.0%. Life Floor on all loans equal to the start rate.
Assumability
Loans may be assumed for a 1% fee; requires lender approval.
Escrows
Escrows for taxes and insurance are required.
Subordinate Financing (second lien)
A second lien from seller (or other private party) is allowed. Up to 95% Combined Loan-To-Value (CLTV) on multifamily and mixed-use, and up up to 90% CLTV on commercial properties. With the addition of a second lien, rate and margin of the first lien will increase by 1%; first lien max LTV will decrease by 5%. Minimum term for the second lien is 5 years.
Seasoning/Cashout Requirements
No seasoning requirements. Unlimited cashout is permitted up to maximum LTV.
Borrower Costs
$1,500 Application Fee plus Third Party Deposit due with term letter. Lender will order appraisal (no exceptions). Origination fee, environmental insurance, survey, title insurance and $2,250 legal/processing fee due at closing.