FHA and Investor Specialist

Commercial Bridge Loans are exactly what they sound like: a real estate secured loan that is in place for a short period of time, typically 6-18 months (although longer terms of up to 3-5 years may be available) until permanent financing can be secured or until there is a means of paying off the bridge loan.  Bridge Lenders will typically lend from 40-60% of a property's value, although Loan to Values can vary from lender to lender.  The means of which the loan will be concluded is often referred to as the "exit strategy" by commercial lenders.  All commercial lenders will want to know exactly what exit strategy is in place and in what time frame this will occur.  A lender for Commercial Bridge Loans will also initially want to see an Executive Summary of not more than 6 pages detailing the purpose of the loan, location, and background of the principal(s).

Typical terms for Commercial Bridge Loans range from 10-18% interest with 2-11 points.  Pricing can depend on risk factors, loan amount, collateral, and other lending criteria.  Sound expensive?  It is, but it is cheaper than having to have a partner.  Bridge Lenders will often be able to close rather quickly on a loan request, often in less than 30 days.  Be prepared to answer numerous preliminary questions and also be prepared to provide documentation to back up your answers: although rates for Commercial Bridge Loans are high, they are not necessarily no or low documentation loans.  Be prepared to incur some upfront costs for a property valuation and for due diligence.   No lender wants to have to take back a property.

             Common Acceptable Property Types for Commercial Bridge Loans:

•1.      Rental Apartment Buildings

•2.      Multi-tenant

•3.      Office Buildings

•4.      Mixed Use

•5.      Multi-Family

•6.      Owner-Occupied Properties

•7.      Strip Malls

•8.      Gas Stations

•9.      Medical Office Buildings

•10.  Professional Office Buildings (Lawyers/CPAs etc...)

•11.  Condo Offices

•12.  Warehouses

•13.  Any other property types or construction shall be considered on a case by case basis.

Typical Loan Amounts for Commercial Bridge Loans:

$350,000 to $2,500,000 typically, although loan amounts for Commercial Bridge Loans can range from 100k to up to 25 Million or more.

Feel free to fill out my contact form for a referral to a source for Commercial Bridge Loans for your specific needs.

Connecticut Jumbo Mortgage Rates have dipped recently, particularly with my Company on purchase money transactions.  30 Year Fixed Rates have dipped to around 5% (5.04% APR) and adjustable mortgage rates even lower on purchase money loans.  Contact me or call 908 531 6170 for a direct quote for your particular needs.  We also offer Jumbo Mortgage Rates for Condo loans as well, given the project is on our "approved" list.  The easing of the secondary market has been a long time coming.  This is good news as only Fairfield County is significantly helped by the new Conforming Jumbo loan limits.  Fairfield County allows for a conforming jumbo loan limit of up to $708,750. No other Counties in Connecticut exceed the loan limit of $417k by more than 23k, according to this link on the HUD website.  

The good news is that while we offer great pricing on conforming jumbo mortgages, there are great programs still available for those who either have a loan amount over $708,750(in Fairfield County-lower in other Counties of Ct) below  5% threshold in "high cost" areas or those who fall just below the county loan limit in the non "high cost" areas. We like to insure we have access to the best loan programs out there.  I was able to price a loan the other day for a 30 Year Fixed Rate at 4.5% for a Conforming Jumbo mortgage loan. (4.55% apr)

Connecticut Jumbo Mortgage Rates are available currently with a 70-80% loan to value up to a 1 million dollar loan amount for fully documented loans, with strong credit, and asset reserves.  This means on a purchase transaction, if you can put 20-30% down, we may be able to arrange financing for a jumbo loan.  Cash-out refinances and rate reduction refinances also are available to a 60%-75% Loan-to-Value, based on an appraised value.  Loan amounts greater than 1 million dollars are also available.  Please contact me directly for quotes and terms.  It is a great idea to really review your particular scenario prior to expecting a rate quote in today's market, so you should expect to contact an experienced mortgage professional and review your scenario in detail prior to receiving loan terms.  In today's market, anything else would be less than scrupulous.

There are different terms available for Connecticut Jumbo Mortgage Rates, such as the traditional 30, 20 and 15 Year Fixed terms as well as adjustable rates such as a 5/1, 7/1, and 10/1 Adjustable Rate Mortgage (ARM) program.  There are also interest-only options available for these Connecticut Jumbo Mortgage Rates, for those that prefer that option.  I have found that many consumers prefer an interest-only option when paying down their loan in an accelerated manner, as the payment re-amortizes monthly.

As always, please contact me any time with questions and for a direct quote for your particular loan!  Not a commitment to lend.

New York Jumbo Mortgage Rates have dipped recently, particularly with my Company.  30 Year Fixed Rates have dipped to around 5% (5.04% APR) and adjustable mortgage rates even lower on purchase money loans.  Contact me or call 908 531 6170 for a direct quote for your particular needs.  In the 5 boroughs and the surrounding area, we also offer Jumbo Mortgage Rates for Co-Op loans and Condo loans as well.  The easing of the secondary market has been a long time coming.  Much of New York "conforming jumbo" loans up to the national high cost maximum of $729,750, according to this link on the HUD website.  

The good news is that while we offer great pricing on conforming jumbo mortgages, there are great programs still available for those who either have a loan amount over $729,750 at rates below the 5% threshold in "high cost" areas or those who fall just below the county loan limit in the non "high cost" areas. We like to insure we have access to the best loan programs out there.  I was able to price a loan the other day for a 30 Year Fixed Rate at 4.5% (4.55% apr) on a Conforming High Balance loan.

New York Jumbo Mortgage Rates are available currently with a 70-80% loan to value up to a 1 million dollar loan amount for fully documented loans, with strong credit, and asset reserves.  This means on a purchase transaction, if you can put 20-30% down, we may be able to arrange financing for a jumbo loan.  Cash-out refinances and rate reduction refinances also are available to a 60%-75% Loan-to-Value, based on an appraised value.  Loan amounts greater than 1 million dollars are also available.  Please contact me directly for quotes and terms.  It is a great idea to really review your particular scenario prior to expecting a rate quote in today's market, so you should expect to contact an experienced mortgage professional and review your scenario in detail prior to receiving loan terms.  In today's market, anything else would be less than scrupulous.

There are different terms available for New York Jumbo Mortgage Rates, such as the traditional 30, 20 and 15 Year Fixed terms as well as adjustable rates such as a 5/1, 7/1, and 10/1 Adjustable Rate Mortgage (ARM) program.  There are also interest-only options available for these New York Jumbo Mortgage Rates, for those that prefer that option.  I have found that many consumers prefer an interest-only option when paying down their loan in an accelerated manner, as the payment re-amortizes monthly.

As always, please contact me any time with questions and for a direct quote for your particular loan!  Not a commitment to lend.

FHA loans are a great idea when buying a condo, with as little as 3.5% down required.  Make sure the condo has been approved for FHA financing.

Here is a perspective (from a non-loan officer) regarding the pitfalls of simply going for the "best rate".

Ask your lending professional what their experience level is and ask for references as well.

Foreign National Loan: One reason the United States real estate market has declined is because there is not a large enough pool of buyers to purchase homes currently on the market.  One great way to increase the pool of buyers is to increase the availability of Foreign National Loans in the housing market.  With home values off of their peak prices by a substantial sum, there is great interest from residents of foreign countries to purchase real estate in the US.  The value of the dollar relative to other foreign currencies also makes it an attractive time for Foreign Nationals to purchase properties at a discounted value. 

The main issue is that there are limited Foreign National Loan programs available for a purchase, or refinance for that matter.  Some Foreign Nationals could also take some equity out of an existing US property they own to purchase another property.  The difficulty in obtaining financing is because there is usually no US established credit, no US tax returns and/or w-2's, and assets may be in a foreign currency.  Many FN's have had to purchase properties outright or seek less than desirable private or hard money financing in order to own a home in the US.  The good news is that now there is a program I can refer to my Foreign National clients.  Feel free to contact me to refer you to a foreign national financing specialist.

One of my referral partners has Foreign National Loan programs available at the below loan-to-values in the listed states. Please contact me for more information on this program and to get you started with financing.  (This is not a Chase program.)  Other states may be available on a case by case basis. A loan to value is calculated by dividing the lower of the purchase price or appraised value (Value) by the loan amount.  For example, a home being purchased for $500,000, with an appraised value of $525,000, and a loan amount of $300,000; would have a loan to value of 60%.

Here is a quick snapshot of the current lending parameters by state:

California - Max 70% LTV
Colorado - Max 70% LTV
Connecticut - Max 60% LTV Metro New York Area
Florida - Max 70% LTV
Hawaii- Max 60% LTV
Nevada - Max 50% LTV
New Jersey - Max 60% LTV Metro New York Area
New York - Max 60% LTV
Washington State- Max 60% LTV
Oregon - Max 70% LTV

Other states may be available on a case by case basis.  Please review the amount of down payment required and the down payment amounts you have prior to looking at homes.  Other guidelines may apply to qualify for financing, including income documentation.  Minimum loan amount 100k.

These loans are available for purchases, refinances, and cash-out refinances.  Documentation requirements may vary on each program and the rates are much better than hard money or private money rates.  This Foreign National Loan program is designed for those living abroad and looking to purchase a true second home or investment property in the US.  It is not designed for those currently living in the US without proper documentation.  Please contact me for details.

Here is a great piece of information on how a buyer's agent can best present an offer for a prospective property.  I feel it is always a great idea for a buyer to have a buyer's agent represent them in the negotiating processs.

It also is imortant for a buyer to meet with a loan officer to get pre-approved for financing prior to looking at properties.

Commercial Project Financing: Here  is a program offered by a referral partner that is worthy of note, being that they are offering commerical and business project financing with just 5% into a project. 

"Projects" can include new commercial developments (hotel, mixed used,
business parks, multi-family (apartments), assisted living facilities,
retail centers, schools, private hospitals etc. This Program can also be
applied to viable opportunities which are NOT associated with an
underlaying real estate collateral.

Minimum funding is $10-million and the upper ceiling is
$250-million.NON-RECOURSE and no pre-payment penalty after the 2nd year.
Loan term UP To 10-years.

At this point in time the structure is as follows: Whatever the target
funding amount is, the client brings 5% of total cost to the table in CASH
(it's 4% of project cost here in the USA) in addition to a $35K
administration/UW fee.

1st year interest only at 5.50%; years 2-5 interest only at 7.50%. At the
end of the 5th year the loan modifies into P&I...interest at 7.50% with the
principle amortized over 20-years all due at end of the agreed upon loan
term.

Current Commercial Project Financing deals-in-progress examples: Two new Embassy Suites Hotel
developments, one in Atlanta ($52-million) and one in Virginia Beach
$115-million; Ten "Value Place" extended stay limited service hotels for
one developer/operator $55-million; $40-million funding for an Athens,
Greece based charter yacht operator with which to purchase two luxury
custom yachts to be built at a FL shipyard.

"Business Only" fundings: $15-million to enable an existing Ford/Lincoln
dealership group to expand into the import and marketing of Chinese
manufactured electric passenger/utilityvehicles; $10-million for a FL based
developer of an advanced lead-cobalt battery system to power electric
vehicles (a lower cost alternative to lithium batteries); A $40-million
fuinding for a MN developer/operator of WiFI/telcom towers/ISP services; A
$36-million funding for a FL based start-up" to acquire and operate a 185
passenger/cargo catamaran to enter scheduled daily service between W. Palm
Beach and the Bahamas.

The funding process is very streamlined and rapid. From the date that the
client receives and accepts Terms and Conditions, opens escrow and wires in
their $35K, closing can be anticipated within 28-days IF the client has all
of their "ducks in a row"..

INTAKE PROCEDURE - The following items are required for initial intake:

1: Completed Loan Application

2: Executive Summary detailing the project, location and Exit Strategy with
bios on the Principal(s) - maximum of 8-pages. We do NOT need or want a
multi-page "book" at this point.

3: Current financial statements on the borrowing entity and PFS on the
Principal(s)

4: 5-Year Pro Forma

5: Use of Funds break out.

6: PROOF OF FUNDS EVIDENCING THAT THE CLIENT HAS THE REQUIRED 5% OF FUNDING
REQUEST. This will take the form of a CURRENT bank statement in the name of
the borroer or borrowing entity.

(Appraisal and Feasibility Study will be requested at the appropriate time).

PROCEDURE: Assuming a FAVORABLE initial review of the above items, a
conference call will be scheduled with the client Principal(s) and the Administration Director.               Purpose of the call is for both parties to "get
comfortable" with the possibility of moving forward.

Within 3-4 days, the client will receive conditional Terms and Conditions
and Escrow Agreement draft for review and acceptance. Client has four
business days in which to confirm acceptance and wire-in the $35K which is
pro-rata refundable. Client also establishes their escrow account with
www.commercialescrow.com. This Escrow Company is entirely independent of
the investment group and is 17-years established, licensed bonded and
insured in CA.

The terms of the Escrow Agreement will fully secure the client's 5% funds
for the sole benefit of the client who remains in sole control over that
account.

At the time the TX investment Group confirm their funding intent, the
client wires the escrowed funds into the Bank that will be issuing the SBLC
that the TX Group will be funding against. It's a seamless process.

The ONLY downside to this Program is that the required funds are issued at
closing.. there are no drawn-downs and intrerest on the entire loan amount
kicks in immediately.

Developers with major scale projects might want to consider structuring
their funding as a series of loans which kick-in as the project develops
over time. Alternatively, deposit "excess" funds into a series of interest
bearing instruments which will at least reduce the interest impact.

Commercial Project Financing:  Please send me the executive summary for an initial review.

Thanks,

This blog points out how those who thought they had missed out on the chance to purchase a home are in a great position now.  It always is imperative to get pre-approved for financing first and to find out how much you can personally afford(as well as be approved for).

Here is a nice piece on what a buyer's agent does in a transaction.  I can offer a pre-approval for financing and recommend a buyers agent for your needs.