Commercial Loans
Firstbanc, primarily originates long-term, fixed-rate, commercial mortgages on multifamily, office, retail, industrial, hotel and many other property types nationally.
Small Apartment Loan Program Guidelines
Loan Amounts $300,000 to $3 Mil.
ELIGIBLE PROPERTIES:
Apartment Buildings of 5 or more units; Mixed Use with up to 25% commercial space allowed. A, B or C grade properties.
INELIGIBLE PROPERTIES:
Senior housing, rooming houses, doubled up tenants (i.e., more tenants than suitable for the units); properties with other than monthly rent payments (no weekly rent payments, no maid service, etc.); properties with restricted tenancies in greater than 25% of the units; properties with a dry cleaning plant on the premises.
LENDING TERRITORY:
Nationwide. Market must have reasonable economic and demographic base.
MINIMUM LOAN AMOUNT: $500,000. ($750,000 in CA)
MAXIMUM LOAN AMOUNT: $3,000,000. (For larger loans, please refer to our other loan programs)
MAXIMUM LOAN TO VALUE:
$2 million: 80% for purchase, 80% for no-cash-out refinance, 75% for cash-out refinance. (Additional requirements apply for maximum loan-to-value on loans over $2 million)
RATES Contact your Loan Officer for current rates
AMORTIZATION: 25-30 years
Term: Fully Amortized: Fixed interest rate periods from 1 – 15 years available.
Loan Fees:
The loan fees vary based on loan amount, property type and other factors. Fees normally
average around 2%
Recourse/Non-Recourse: Recourse
Pre-payment Penalties: Step Down schedule. (See “Interest Rate Information” below.)
Assumable?: Yes
Secondary Financing:
Not Allowed at time of acquisition (on refinance loans a 5% subordinate pre-existing loan may be approved)
Eligible Borrowers:
Individuals, Corporations, LLCs, Partnerships, and Trusts. Generally, the property must be held in a legal entity.
Credit Requirements: Good credit, scores over 600.
Documentation:
Full Doc (Firstbanc has stated income programs available, please see our other loan programs)
Time to Close: 45 to 60 days
Items Needed for Pre-Approval:
1) Completed 1003 Uniform Residential Loan Application
2) Current Rent Roll
3) Last 2 Year’s and Year-to-date Operating Statements.
4) Emailed Digital Photos of Property (minimum of 5)
5) Copy of Purchase Contract (if applicable)
Note: Rent Roll and Operating Statements can be your own forms or can be completed on our forms available at in the forms section of our website: firstbanc.net.
Fax Pre-Approvals to: 240-255-0063
Or Email to: LoanApplication@firstbanc.net
Mail or Fed Ex to:
Firstbanc, LLC
Attn: Underwriting
6701 Democracy Blvd. Suite 300
Bethesda, MD 20817
Toll Free Telephone: 1-800-511-5520
INTEREST RATE INFORMATION
30 Year Programs:
Initial Fixed Period: Your interest rate will remain fixed at the initial rate for the entire
period stated.
Fixed Program:
At the end of the initial fixed period, your loan will convert into a
6 month adjustable loan. The interest rate will be determined by a
fixed margin over the 6 Month LIBOR index.
15 Year Program: fixed Period: Your interest rate will remain fixed for the entire 15 year term.
All Programs: Balloon Payment: None
PRE-PAYMENT PENALTY TABLE
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9+
1/6mo.ARM 3% 2% 0%
3 yr. Fixed 4% 2% 0%
5 yr. Fixed 5% 4% 3% 2% 0%
7 yr. Fixed 5% 5% 4% 3% 2% 1%
10 yr. Fixed 5% 5% 4% 4% 3% 2% 1% 0%
15 yr. Fixed 5% 5% 4% 4% 3% 2% 1% 1% 0%
SMALL APARTMENT LOAN PROGRAM BENEFITS
- No Balloon Payments
- No Maintenance Reserves.
- Low Application Expenses.
- Experienced representatives. We do multi-family loans all day every day. We
- know the program inside and out, how to protect you through the pre-qualification
- process, and then how to get your loan closed quickly and efficiently.