Owner Occupied Loan Overview
The Borrower’s business that occupies the building is underwritten to make sure that it makes enough cash-flow to service the loan. In order to analyze these loans 3 years business tax returns are required in addition to a business debt schedule, personal financial statement, personal tax returns, and a credit report. CLD is a national correspondent lender and mortgage banking firm with over 200 products. CLD offers most owner occupied programs available in the marketplace.
Conventional Loans
A Conventional Loan is a mortgage that is provided by a bank, credit union, savings institution, or other traditional financial institution and is secured by a first lien position on the subject property being financed. The collateral may be any type of commercial real estate and do not always require previous experience. These loans are typically best suited for inexperienced borrowers, small loan balances, specialty properties, or any other structure that may require a personal guaranty.
| Loan Type | Rates | Properties | Loan Amount | Max LTV | Term | Amortization |
|---|---|---|---|---|---|---|
| Conventional | 4.99% - 8.75% | Hotel, Industrial, Medical, Mixed-Use, Office, Retail, Self-Storage |
$1,000,000+ | 80% | 3 - 15 Years |
15 - 30 Years |
Small Business Administration (SBA) Loans
The Small Business Administration (SBA) was created in 1953 as an independent agency of the US government to protect the interests of small businesses, preserve competitive enterprise, and strengthen the economy. The SBA helps small business owners remain the engine of the United States by offering higher LTVs and lower DSCRs than most conventional loan products. These programs are operated through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA; the Agency has no funds for direct lending or grants. Although these programs are available for any individual, it gives special advantages to women and those belonging to minority groups. Markets served the United States, Puerto Rico, the U. S. Virgin Islands and Guam.
| Loan Type | Rates | Properties | Loan Amount | Max LTV | Term | Amortization |
|---|---|---|---|---|---|---|
| SBA | 5.75% - 8.75% | Hotel, Industrial, Medical, Mixed-Use, Office, Retail, Self-Storage |
$1,000,000+ | 90% | 3 - 25 Years |
15 - 30 Years |
United States Department of Agriculture (USDA) Loans
The USDA helps create jobs and stimulates rural economies by providing financial backing for rural businesses and properties. Its primary purpose is to create and maintain employment and improve the economic climate in rural communities. USDA Loan proceeds may be used for working capital, machinery and equipment, real estate, and certain types of debt refinancing. This is achieved by expanding the lending capability of private lenders in rural areas and helping them make and service quality loans that provide lasting community benefits. This program represents a true private-public partnership.
| Loan Type | Rates | Properties | Loan Amount | Max LTV | Term | Amortization |
|---|---|---|---|---|---|---|
| USDA | 6.00% - 8.75% | Hotel, Industrial, Medical, Mixed-Use, Office, Retail, Self-Storage |
$1,000,000+ | 85% | 5 - 15 Years |
15 - 30 Years |
