When selecting the right loan, as a Mortgage Broker, I consider and review hundereds of variables before I educate my clients on their options. ~ Jay
California Commercial Funding
Assistance on a variety commercial loan products:
Commercial Investment Loans Suited for multi tenant properties such as apartment buildings, shopping centers, office buildings, and many other property types where the borrower will occupy 25% less of the property. Loans are underwritten using the properties cash flow and the borrower's personal income is only used to determine ability to service personal debts.
B&I Commercial Loans 90% is the maximum we will lend. No minimum set credit score. Loan amounts from $1mm to $15,000,000.
Non Profit Loans 80% first trust commercial loans and up to 100% CLTV with a second trust.
Stated Income Commercial Loans We offer hard money loans through multiple companies up to 60% of the property value. There are no minimum credit scores; BK and foreclosure situations are accepted on a case by case basis. Loan amounts from $200,000 to $750,000. Please email for more details.
Hard Money Loans The term hard money loan refers to a real estate loan that is based primarily on the equity in the property, rather than on the borrower’s ability to prove that he can repay the loan.
Conventional Owner Occupied Commercial Business Loans
Designed for the business owner that will occupy at least 25% of the property and can show at least 2 years of stabilized financials able to support the requested loan. Debt service is calculated on a global basis using the subject business and borrowers financials. Lease income generated by investment tenants is also applied towards debt service in underwriting.
Commercial Business Loan Program Guidelines:
Commercial Real Estate Loans
Full Document Commercial Loans -
65% is the maximum we will lend 90% with an SBA guarantee. Our minimum credit
score is 660 however we do not allow any prior history of BK on our Full
Document commercial loan product. Loan amounts from $400,000 to $4,500,000
Up to 90% LTV for multi use commercial properties, 65% for special use commercial properties.
Commercial Loan amounts up to $8mm.
30 year fixed rates available on most commercial loans.
Debt Service Coverage Ratio (DSCR) as low as 1.20 to 1.
Multiple prepayment options to choose from.
Commercial Business Loan Program Benefits:
Low down payment.
Loans without call provisions.
Reasonable debt service coverage requirements.
Suited for multi tenant properties such as apartment buildings, shopping centers, office buildings, and many other property types where the borrower will occupy 25% less of the property. Loans are underwritten using the properties cash flow and the borrower's personal income is only used to determine ability to service personal debts.
Real Estate Loans Program Guidlines:
80% LTV on most property types.
CLTV up to 85%.
Loan amounts from $250,000 to $15mm.
Fixed rate options up to 10 years.
30 year amortizations on most property types.
Debt Service Coverage Ratio down to 1.15.
Multiple prepayment options available.
Real Estate Loans Program Benefits:
Low down payment.
Secondary financing allowed; we do not provide.
Long fixed rates with low payments.
Easy to qualify DSCR (Debt Service Coverage Ratio).
Flexible prepayment choices available.
This SBA loans is best used by a borrower looking to purchase or construct commercial real estate that will be at least 51% owner occupied. The remaining portion may be leased out to tenants and generate income for the property owner. This SBA loan program utilizes a first mortgage and a second mortgage that is guaranteed by the Small Business Administration (SBA). Both loans are processed simultaneously to decrease the time needed to fund the transaction.
SBA Loan Program Guidlines:
90% LTV for multi use, and 85% for special use.
Loan amounts as little as $250,000 and as high as $7mm.
Fixed rate commercial loans up to 25 years for conventional loans, and 20 years for SBA loans.
Debt Service Coverage Ratio (DSCR) as low as 1.00 to 1.00.
Multiple prepayment options to choose from.
SBA Loan Program Benefits:
Low down payment.
Easy underwriting guidelines.
Fixed payment options.
Easy to qualify terms.
Flexible prepayment options.
B&I USDA Loan Program Primer
A Business and Industry Guaranteed Loan, or B&I, is a loan given for the improvement, development and/or financing of industry, business and employment. B&I’s are meant to improve rural communities, both economically and environmentally. How do these loans achieve their goals? They do so by guaranteeing quality loans that will beef up the existing private lending structure.
These loans aren’t for everyone. In order to qualify for a B&I loan, a person has to be in the process of doing or planning to do a number of things. B&I hopefuls must have the plans of either providing employment, promoting the conservation, use and development of agriculture, water, improving the environment or economic situation of their community, or trying to reduce the use of nonrenewable energies. Potential borrowers that are not legal entities (i.e.: a corporation or company) must be either American citizens or legal residents living in the U.S. Legal entities like companies or corporations hoping to get a B&I must be at least 51% owned by legal residents or citizens of the U.S. Business and Industry loans are only available to rural areas and/or cities and towns with a population of less than 50 thousand residents.
Once you’ve obtained a Business and Industry loan, you can only use it for certain things. Businesses can only use them to keep from closing and causing the loss of employment opportunities or to provide more jobs for the community. The loans can also be used to modernize, develop, or otherwise repair or enlarge a business. Another use for B&I’s is for the purposes of purchasing land, buildings and/or facilities. Finally the loans can be used for improving leaseholds, the purchase of equipments, supplies, machinery or inventory.
The B&I is a guaranteed loan from the United States Department of Agriculture. What does this mean? It means that the USDA promises to pay the loan if the borrower is no longer able to do so because of lack resources. This makes banks more liable to give a big loan to fragile business. However, the USDA only guarantees certain percentages of the loans. For loans of more than $10 million, only 60% of the loan is guaranteed. Loans between $5 and $10 million have a 70% guarantee and loans up to $5 million only are guaranteed to 80%. These percentages of guarantee are only maximum percentages. The actual guarantee percentage has to be negotiated between the borrower, the lender and the USDA.
Remember, Business and Industry Guaranteed Loans from the United States Department of Agriculture are only meant to provide encouragement for the development of rural communities. Any business or individual looking to get a B&I must comply with certain restrictions and certain expectations. The main goal is to promote growth and to prevent unemployment. The USDA wants to also ensure that companies are not going to do any further damage to the environment and/or community by relying heavily on non-renewable sources of energy or to neglect using aquamarine water.
What to Expect With Mixed Use Loans
A mixed-use commercial loan is used for property loans that include some sort of commercial buildings, such as an officer or retail establishment, as well as a residential component such as an apartment or living space. The most common types of mixed-use properties are those that include businesses that are found on the ground floor and apartments or living spaces that are found on the upper floor.
California Commercial Funding offers mixed-use commercial loans for the purchase and refinance of commercial real estate and are available in adjustable, 5 and 10 year fixed terms with amortizations as long as 30 years. Mixed-use commercial loans range from $250,000-$7,500,000, although certain restrictions apply. Individuals interested in learning more about mixed-use commercial loans should contact California Comercial Funding and speak with one of their loan officers.
Funds from mixed-use commercial loans may be used to consolidate debt, expand businesses, improve property, expand inventory, purchase equipment, or for purchasing additional property. While many mixed-use properties are generally believed to be popular investments, obtaining financing for such commercial property types can be difficult with some lenders but not generally with California Commercial Funding. In most cases, mixed-use property loans may be financed with long terms that range from 25 to 30 years. Longer loan terms such as these allow individuals to lower monthly payments and generate positive cash flow.
The needs of individuals applying for mixed-use commercial property loan programs vary but generally include the need to purchase, refinance, refurbish, or otherwise improve mixed-use properties throughout the country.
Most mixed-use commercial property loans that California Comercial Funding offers enable borrowers to obtain rapid, as well as customized financing options with no points and low rates than may be available through other sources. Options are available depending on individual requirements and needs and may include large or small balance mixed-use commercial loans. In most cases, large balance mixed-use commercial loans don't require any upfront fees and offer fast approval processes, cash out options and adjustable or fixed rates.
Smaller income mixed-use commercial loans are commonly sought after for medium to large size markets, with easy application processes that don't require huge numbers of documents. Small balance mixed-use loan programs are typically defined as loan sizes under $1 million.
Large balance mixed-use commercial loans generally range in size from one million to $7,500,000. Commercial mortgage terms may be offered in 25 or 30 years and the closing time is generally completed within 45 to 60 business days. Small balance mixed-use commercial loans are generally available from $250,000-$1,000,000 and include fixed terms that are available in three month, 5 and 10 years
To qualify for a mixed-use loan, most businesses should be able to show at least two years of operation, as well as fulfill requirements associated with that property type.
What Types of Loans are Available to Churches?.
Some of our more common church loan Programs are:
Traditional Church Loan: This is a traditional church loan with amortizations ranging from 10 years to 30 years and fixed rates ranging from 5 years to 20 years. This program uses an underwriting method called Debt Service Coverage to determine how much a church may be able to afford. This type of church loan does not normally require personal guarantees and has excellent rates and terms.
Easy Qualifier Church Loan: This church loan product uses a multiple of income approach to qualify the loan amount a church can afford to borrow. This loan type is often easier for a church to use to qualify than the Traditional church loan program. This loan program is often used for newer churches or churches that have had limited financial trouble in the past. This program has slightly higher interest rates than the Traditional church loan program.
Church Sanctuary Saver: Although it is rare, there are instances where a church will find itself in trouble, behind on payments and facing foreclosure. This program is used to help save those churches, with interest only payments possible, we can refinance your current mortgage and get you back on your feet. This program has higher interest rates and only accepts low loan to value transactions.
Low Down Payment Church Loan: Most lenders require churches to put down a lot of money when purchasing property. This church loan allows a church to put down as little as 10% of their own money by utilizing a first and second trust mortgage. The first trust would be provided through us and the second trust would come from the seller of the property or by other means. This program has great rates and terms.
Church Bond Program: If your church requires a long term fixed rate with no balloon then this may just be the program for you. Church Bonds have great interest rates and generally no balloons. The costs associated with this type of transaction are generally higher than our church loan programs but they can be a good fit for the right church.
There are many different types ofchurch loans available and choosing the right loan for your church is an important decision. Our church loan Analysts have years of experience helping churches sort through our various programs and figure out what is best for them. We will listen to your needs, ask questions about your church and make recommendations on which church loan product we think is right for you.
Hard Money Loans
The term hard money loan refers to a real estate loan that is based primarily on the equity in the property, rather than on the borrower’s ability to prove that he can repay the loan.
There are times in the life of every business when the company is losing money. Staff and payroll needs to be cut. New products have to developed and marketed. This takes time and money, and it’s virtually impossible to get bank financing when a company is losing money. If a company has equity in its plant or office building, however, the company can borrow against this equity to buy time.
California Commercial Funding aranges loans on commercial properties and multifamily properties. Our underwriting is based primarily on the equity in the property, although a good credit record or strong financial statements will lead to a lower rate and a smaller loan fee.
Competing hard money lenders typically charge a high interest rate, a loan fee of at least three points, and have a loan term of just one or two years. In contrast, California Commercial Funding finds rates and terms are closer to those of a bank than a hard money lender. We arange 15 year loans with no lockout clause and no prepayment penalty.
Easy Commercial Mortgage Loans!
No up front application or due diligence fees, you only pay for third party reports!!
9.9%-13.9% for the first 3 years.
Adjustable semi-annually for 10 years thereafter.
Index- Five year constant Maturity Treasuries Higher start rate for older, less attractive properties. 2.5 to 3.5 points + $950
15/15 or 30/15 NO PREPAYMENT PENALTY
Our loans are assumable
Third Party Reports: General Certified Appraisal:$2,000 to $3,500 Toxic Report: $800 to $2,600
Minimum loan amount-$75,000 ~ Maximum loan amount-$1,500,000
Loan-To-Value Ratio We Allow Junior Financing!
65% maximum LTV on rental-type commercial properties: Apartment Buildings (5+units) Office Buildings Retail Buildings Strip Centers and Shopping Centers Industrial Buildings and Warehouses Mobile Home Parks and Trailer Parks Mini-Warehouse (Self Storage) Mixed Use Properties
55% maximum LTV on business-type properties: Hotels and Motels Restaurants and Bars (unless the building is basically just a box-then maybe 65% LTV) Residential Care Homes, Nursing Homes, and Convalescent Hospitals Auto Repair Buildings Gas Stations.