Flexible Permanent Loans
ICS offers FLEX loans with 5 to 30-Year Fixed terms. These are single-asset & portfolio loans for stabilized investment properties that just miss conforming underwriting requirements. Owner-user available on commercial. FLEX loans are non-conforming loans offering 30-year amortization with a prepayment penalty. Underwriting guidelines are more flexible, providing long-term financing for borrowers and/or properties that aren’t ready for institutional financing. Rates and LTV limits are FICO score based. Close in 30 to 45 days. ICS FLEX Loans are non-conforming finance products funded through our private lender partnerships.
Non-Conforming FLEX Loans are recommended for borrowers intending to hold the property for 5 or more years before selling or refinancing. Income producing properties must be performing at a DSCR of 1.1x or more. These loans have less strict underwriting guidelines than institutional-grade conforming loans, offering competitive market rates for qualified properties and borrowers that just miss conforming guidelines.
Recourse and Non-Recourse options available.
All FLEX Loans have a prepayment penalty, usually through the second to last year of the initial fixed period. Step-down and yield maintenance prepayment options are available.
FLEX Loans are available for 1st mortgages starting at $100k.
30 to 45 Days
6 to 9-months mortgage reserves are required.
A strong schedule of real estate owned is important but not required.
LOAN TERMS & AMORTIZATION
Multifamily 5+ Units: 5, 10, and 30-year terms. 15 and 30-year amortization.
1 to 4 Units Residential: 5, 10, 15, and 30-year terms. 15 and 30-year amortization.
Office: 5 and 10-year fixed terms. 15 and 30-year amortization.
Retail: 5 and 10-year fixed terms. 15 and 30-year amortization.
Industrial / Warehouse: 5 and 10-year fixed terms. 15 and 30-year amortization.
Residential Portfolio Loan: 5, 10, and 30-year fixed terms for portfolios with 5+ properties. 15 and 30-year amortization.
FULL-TERM, BALLOON, AND HYRBID
Loans can be structured as full-term, balloon, and hybrid. Full-term loans amortize over the life of the loan, and are paid in full upon loan maturity. Balloon mortgages are fixed-rate loans with a balloon payment due at the end of the initial term. Hybrid loans have a fixed-rate for the initial fixed term, then adjust annually or semi-annually through the remaining loan term. For example, a 10-year fixed hybrid mortgage is fixed for the initial 10-years, then adjusts annually or semiannually through the remaining 30-years. A 10-year fixed balloon mortgage is fixed for the initial 10-years, with the loan balance due in full at the end of the 10-year period. A 30-year fixed mortgage is fixed for the entire 30-years, paid in full at loan maturity.
Full-Term: Higher rate providing the most security. Loan is fixed for the entire loan term.
Balloon: Lower rate than a full-term loan. Property must be refinanced or sold by the end of the term.
Hybrid: Lower rate than a full-term loan. Borrower has the benefit of a low fixed-rate loan during the initial term, can ride the adjusting rate after the initial fixed-term through loan maturity, or sell/refinance.
CREDIT SCORE REQUIREMENTS
OPERATING INCOME – SEASONING
Approval and interest rates are primarily based upon the net operating income of the property and LTV. The property must show it has been operating at a net operating income over the last 3-months to support the DSCR at the proposed market interest rate.
- FULL or LITE-DOC UNDERWRITING
- Rent Roll
- P&L / Last 12 to 24-months
- Borrower 1003 or Personal Financial Statement
- Schedule Real Estate Owned
- Bank Statement(s) Verifying Down Payment/Reserves
- Minimum 3 Quality Property Photos
- No tax return options