Commercial Loans

Stated Income Apartment Loan Program Guidelines
Loan Amounts $100,000 to $1 Mil.
ELIGIBLE PROPERTIES:
Apartment Buildings of 5 or more units; Mixed Use with no more that 50% of the the net operating income coming from the commercial space. A or B 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: $100,000

MAXIMUM LOAN AMOUNT: $1,000,000. (For larger loans, please refer to our other loan programs)

MAXIMUM LOAN TO VALUE:
90% CLTV with an 80% first, 70% for cash-out refinance

RATES Variable and fixed rates available. Contact your Loan Officer for current rates

INTEREST RATE CAPS:
Periodic cap for 1 year program is 2%, for 2 and 5 year programs the cap is 2% for the initial reset and 1% every 6 months thereafter. The lifetime cap on all loans is the fully indexed rate plus 6% and the floor rate is the start rate.

AMORTIZATION: 15-30 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, subject to approval

Secondary Financing:
Secondary financing is allowable up to 20% on purchases

Eligible Borrowers:
Individuals, Corporations, LLCs, Partnerships, and Trusts Generally, the property must be held in a legal entity.

Credit Requirements: A, B and C credit, minimum credit scores of 575.

Documentation:
Stated income and stated asset

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. 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.