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Commercial 30 Year Fixed

New commercial 30 year fixed, offers distinct advantages over typical bank and or SBA loans. The structure is similar to the traditional residential loan in that the rate and amortization are fixed for the duration of the loan, 30 years.  Giving borrowers long term commercial fixed rate loans and peace of mind that they never have to worry about future rate increases/volatility.

Loan amounts range from $400,000 - $5,000,000.  Program is for both commercial real estate investors or owner user. 

 

Long Term Fixed Rate Financing:

  • No balloons, or associated costs of refinancing loan in future. Typical bank loan requires borrower to re-incur some/most costs of restructuring loan, i.e. borrower has to update appraisal, update environmental reports, etc. when loan balloons.
  • Longer amortization of the Commercial 30 Year Fixed, typically reduces monthly debt payment by 10 -20% (See below comparison).
  • No concerns over potential future rate increase.
  • Borrower can pay loan down by 20% per year without incurring prepayment penalties.

In addition, virtually all bank loans have two very negative terms in their loan agreements that are not included in this program.  1. "Right to Offset" gives banks the right to pull money out of your checking/savings account at their discretion, should issues arise.  2.  "Call Provision" which gives banks the right to balloon your loan at any time, regardless of the fixed period or if you are current  on your monthly mortgage payment.  In Metro Detroit we are seeing this more and more, as the local banks want "out "of business's that are related to the automotive industry.    

30 Year Fixed Comes in Both:

  • Full Documentation
  • Stated Income - Meaning borrower does not have to provide business or personal tax returns or personal financial statement to qualify for loan. Ideal for business's that do not report enough income on their tax returns to qualify for traditional loans.

Loan Comparison - Bank vs. SBA vs. New 30 Year Fixed

  Loan Amount Amortization Fixed Period Interest Rate Fee Down  Refinance  Monthly 
Payment  Payment 
Typical Bank Loan $1,000,000 loan amount 20 year amortization (ranges from 10 - 20 Years) Fixed for 5 years (meaning loan balloons, comes due after 5 years) 6.5% rate Normally 1% origination fee = $10,000 due at close 20% – 30%  Max 70% Loan to Value  $7,455 Monthly Principle and Interest Payment
Typical SBA Loan - 7(A) $1,000,000 loan amount 25 year amortization (Typically 20 - 25 Years) Rate typically adjusts quarterly 8.25% rate (normally “Prime” plus 1%- 3%) SBA guarantee fee 3.5% of Guaranteed portion = $26,250  10% down on purchases NO  $8,520 Monthly Principle and Interest Payment
New 30 Year Fixed $1,000,000 loan amount 30 year amortization 30 years 6.75% rate Normally 1% origination fee = $10,000 10% down on purchases for owner occupants Up to 80% Loan To Value  $6,485Monthly Principle and Interest Payment

Property Types Include:

Multi Family, Mixed Use, Office, Retail, Warehouse, Self Storage, MHP, Light Industrial, Automotive, Restaurant, Other Special Purpose.

Qualifying Parameters:

• Business has to be in existence for minimum of 2 years
• Borrower needs personal credit score of 640
• Loan amount ranges for $400,000 - $5,000,000
• Only 10% down on purchase for owner occupant
• Up to 70% loan to value on Cash Out Refinance

Fill out the mini commercial loan application to get pre approved now. Or call to discuss your situation at 248 885-8797.

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Commercial Finance Advisors, Inc.
(248) 885-8797 Phone
(866) 337-3141 Fax
http://www.cfa-commercial.com/

Main Office
261 E Maple Rd
Birmingham, Michigan 48009

Second Office
Roanoke, Virgina

 



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