What closing costs does do I have to pay?
The borrower pays 1% loan origination fee.  There is no separate fee for appraisal. The 1% includes title/escrow (on refi/equity only). The fee is collected when the loan funds and can be paid from proceeds.
  •  On fixed loans the borrower can waive the 1% loan origination fee by adding .35% to the interest rate.
  •  On purchase transactions a $500 loan origination fee deposit is due upon acceptance of the loan terms and is applied to the borrower's 1% loan origination fee.
  •  If the state or other taxing authority imposes a tax or fee on the filing of a mortgage or deed of trust, the tax or fee is the borrower's responsibility.
  •  Environmentally sensitive properties require environmental insurance, if applicable the fee is the borrower’s responsibility.

What commercial real estate loan terms do you offer?
Fixed and adjustable loans and lines of credit are available with the following terms:
  • Fixed: 5, 7, 10, 15; 25 due in 10 and 30 due in 5
  • ARMs: 5, 10, 15; 25 due in 10 and 30 due in 5
  • Commercial Equity Line of Credit (CELOC)
  • Line/Loan Combo

What caps apply to your adjustable loans and your commercial lines of credit?
There are no caps.

What is the typical margin on your commercial line of credit?
Generally, .05 - 3.5 margins are found on lines of credit.

Do you offer interest-only payment terms?
Yes, on lines of credit.

How long can the borrower use the commercial real estate credit line?
In most states our lines are "evergreen"; that means the credit line remains open as long as payments are made on time, you do not exceed your credit limit, and you are not otherwise in default.

What is the annual fee on a commercial line of credit?
The annual fee on a commercial line of credit varies with the line amount.
  • Fee is 0.25% per year based on line commitment. Fee is waived the first year.
  • Minimum $250
  • Maximum $1,000

Do you do commercial loans vested in the name of a trust?
Yes. We will lend to the trustees of the trust when a property is vested in a trust. Our program does not lend to the trust but to the trustees.

Will you do a second behind a private party first?
Yes.

Will you subordinate a commercial loan or line to second position after it has been closed in first position?
No, we will not move a commercial loan or line from first position to second position after a deal has been closed. However, if we close a loan in second position, and then the first is refinanced, we will likely resubordinate our original second position.

What percent of occupancy do you consider to be "owner-occupied"?
If the borrower occupies at least 51% of the available square footage the property is considered owner-occupied.

What credit bureau do you use for determining a borrower’s credit-worthiness?
We typically run a single report from one of the three major providers. We do not use a tri-merge report.

Do you do environmentally sensitive properties?
Yes. We can do first liens on a variety of environmentally sensitive properties as long as we can obtain environmental insurance. We cannot go in second lien position on environmental properties.

Does your product have a pre-payment penalty?
Yes. There is a pre-payment penalty on fixed-rate loans:
Years:
1-2    3%
3-4    2%
5 +    1%
There is an early closure fee on adjustable loans and lines of credit. The fee is $1,500 if closed within the first three years. 

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