|SBA Loan 25-Year Adjustable|
|Property Type: Restaurant / Bar|
Loan Type: Long-Term Loan / SBA
Property Use: Owner-User
Term: 25-Year Adjustable
Rate Type: Adjustable
Doc Type: Full Doc – Tax Returns Required
Loan Maturity: 25-Years
Maximum LTV: 90.000%
Min Credit Score: 650
Recourse: Recourse & Non-Recourse
|Maximum LTC: | Maximum ARV:|
SBA Loans are structured and financed through the SBA 7a program. The loans are designed for commercial and hotel properties where the business owner occupies 51% or more of the property for business operations. Owner-users can finance up to 90% of the property purchase price or market value when refinancing. SBA loans are 25-year term adjustable loans and can be used for long-term permanent financing, construction, and rehab projects. Rates are 2% to 4% above the Federal Prime Rate. Fixed rates are available on a case-by-case basis.
|Ownership: Properties must be held in an LLC, partnership, trust, or other corporate structure. In most cases, properties cannot be held in an individual’s name, solely or jointly. Unless non-recourse, borrowers are personally responsible for property and mortgage performance.|
Underwriting: Asset-based and business underwriting with emphysis on property value, property and business net operating income, and potential NOI. Personal and business tax returns are required. Year-to-date and previous year property and business operating statements, rent roll, and schedule of real estate owned required.
Reserves: 6-9 months operating reserves required in addition to the down payment, if a purchase.
Loan Origination Fee: 1%
Loan Processing Fee:
Loans $250k to $500k = $975 | $500k+ $2,500
Underwriting & Appraisal Estimate:
0.25% to 0.5% of loan amount
|UNDERWRITING DOCUMENT REQUIREMENTS|
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