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 Low-Doc Program: From $100,000 To $1 Million
Fully amortized – No Balloon Payment!
Quick closings, typically within 30-45 days
INELIGIBLE PROPERTY TYPES:
Gas stations, nursing homes, assisted living centers, churches, adult entertainment, ranches/agricultural, raw land. Construction, interim, and rehab deals are not eligible.
Program Details
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.
Debt Service Coverage Ratio (DSCR)
Property must debt service a minimum of 1.20x. Owner Occupied properties will be evaluated based on market rents.
Prepayment Penalties
2 year lockout & 5% prepayment penalty for 5 years on 15-year amortization
3 year lockout & 5% prepayment penalty for 6 years on 20-year amortization
Caps/Floors
1-Year ARM – 2% annual caps, 6% lifetime cap
2 & 5 year fixed – 1% every 6 months, 6% lifetime cap.
Life Floor on all loans equal to the start rate.
Assumability
Loans may be assumed for a 2% fee; subject to 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 90% combined loan-to-value (CLTV). Minimum term for the second lien is 5 years.
Borrower Costs
$2,500 Application Fee plus Third Party Deposit due with term letter. Lender will order appraisal (no exceptions). Origination fee, environmental insurance, survey, title insurance and $1,750 legal/processing fee due at closing.
Seasoning Requirements
No seasoning requirements. Maximum of one ownership transfer in last 2 years. Cash-out may reduce LTV by 10%.
All information presented on this page is subject to change without notice.