        |
Automotive Property LoansOwners considering an automotive property loan are often surprised to discover how many new attractive loan programs that have become available within the last 5 years. 30 year amortization periods, stated income and cash out refinance up to 75% LTV are now on the market. However, automotive refinances are still heavily scrutinized by lenders that take a hard look at the environmental status of the property. In addition, the special use nature of the properties as well as the high level of seller financing (land contracts) further complicate and make lenders cautious.
LTV - CLTV
Loan To Value restrictions on automotive building refinances are typically capped at 70% on rate and term and 65% on cash out refinances. However, there are a few lenders now that will allow up to 75% on a cash out basis. Lenders also will permit high leverage with seller held financing (sits in second lien position). The combined loan to value can be as high as 90%. For example, if the current first lien position existing convention loan is at 40% loan to value and the seller held is at 30% loan to value the owner could pull an additional 20% equity out on a cash out refinance (40% + 30% + 20% =90% CLTV). Debt Service Coverage Ratio restrictions are typically conservative at 1:1.3 for this building type. Meaning that for every $1.30 of net income (income after taxes, insurance, repairs, etc) the property/business produces, the mortgage payment will not be allowed to exceed $1.00. Said in another way, after all expenses and the mortgage have been paid, the owner needs to net $.30 to qualify. Due to the cash nature of this business, stated income loans, (where borrower does not have to provide tax returns) can be a solid option for owners that do not show enough net income to qualify for traditional loans. With this type of loan the DSCR discussed above is not relevant.
Tenant Evaluation Property Analysis Great caution will typically be used as market value and market rent is evaluated and compared to the subject property. Environmental status of the property will be examined and buildings constructed before 1997 will be further analyzed. Appearance, location, accessibility, and local market conditions, as well as other factors are considered.
Credit Worthiness We have some very strong automotive property loan options. For example we have a commercial 30 year fixed program and a no cost refinance program (excluding environmental insurance fee) for automotive building loans under $500,000. In addition we have a 5 year fixed SBA 7a program that is designed for special purpose type transactions. Get pre approved now on your automotive property loan now or call 248 885-8797 to discuss.
:: Commercial Loan Programs :: Fixed Rate SBA 7a Loan :: Commercial Second Mortgages :: Commercial Equity Line of Credit :: SBA 504 Commercial Loans :: Hard Money Commercial Loans :: Commercial Stated Income Loans :: Commercial Loan Rates :: Commercial Loan Calculators :: 90% Commercial Financing :: Commercial 30 Year Fixed :: Commercial 15 Year Fixed :: PRE APPROVAL :: Commercial Loan Refinance :: Hotel Loan :: Restaurant Funding :: Office Building Loans :: Mixed Use Property Loans :: Industrial Building Loans :: Retail Property Loan :: NNN Property Loans :: Automotive Property Loans :: Car Wash Loans :: Gas Station Loans :: Special Purpose Property Loans :: STORE for Commercial Loan Broker :: Commercial Mortgage Broker Fee Agreement :: Co Broker Agreement :: Commercial Mortgage Broker Training Book :: Spreadsheet Commercial Loan :: Commercial Loan Training Course :: Become Commercial Broker :: Commercial Loan Underwriting :: Commercial Lease vs Own :: Commercial Loan News :: Commercial Property List :: FAQ's :: Site Map :: Links ::
© 2008 Myers Internet, Inc. All Rights Reserved Powered by: Myers Internet, Inc. | Admin Login |
