What is a Florida Hard and Private Money Equity/Bridge Loan
A commercial loan
is based on or secured by free and clear equity commercial buildings such as apartments, hotels, restaurants, warehouses and office buildings. In other words, the building is usually paid off or has a small balance and a new first mortgage secured by this type of commercial loan. The investors will overlook a lot of credit issues, and be more flexible on income documentation where the banks would turn this loan down. A Commercial Hard Money Loan
(Private Money) is fast and usually can close in 10 to 21 days. The limit on the loan to value is 50% so if you own a free and clear Florida strip center worth one million dollars you would be able to borrow up to 55% loan to value. So you could get a loan of $550K. The main advantage of a commercial hard and private money loan is speed, easy underwriting, and you can close usually in 21 days or less. It's great if you have limited income, bad credit, show a loss on your income taxes, but have a free and clear commercial building, a Commercial Hard and Private Money Loan would be a great option for you. 90% of these loans are financed since the endorsments are all self-employed and have income and or credit issues. This type of financing is the easiest of all the commercial loans and the least amount of documents to review is required.
Alt-A or Subprime Florida Loan
A Subprime Commercial is a loan secured by a real estate with loan-to-values going up to 65% borrowers usually can show good income, but still have some credit issues that prevents them from getting a bank loan. Usually, these clients have upper 500 scores to mid 600 scores but the banks still have turned their commercial deal down. An Alt-A or Subprime commercial loan will also offer lower rates start at 9% and up which is better than the hard money loans. A subprime commercial loan is for commercial borrowers with less than perfect credit but good income 50% DTI (debt to income), they have good tax returns and strong bank statements with rent rolls. Clients will be required to put only 40% down on a Subprime Commercial Purchase Loan. Most of the subprime commercial borrowers
are self-employed as well.
Bank Statement Commercial and Florida Hard Money Loans
These are commercial loans secured by a real estate with LTVs of 55% based on 12 to 24 months of your personal and business bank statements. Applicants have some credit but can't usually prove good income on their commercial properties or through their personal bank statements. These loans are similar to the subprime commercial loans and the client can expect closing times up to 21 days. Not as many documents are required to review.
Foreign Commercial Florida Loans
Foreign Nationals will use your collateral as equity and base the loan similar to a Commercial Hard Money loan. No credit required, but income will be required to finance the loan. Loans to values are capped at 50% on a Commercial Refinance or Purchase. Closing times are usually within 14 days. This is a straight up equity based loan.
Bank Conforming Commercial Florida Bridge Loan
We do have Bank Commercial loan programs
based on the 1st mortgage on you property. This is the best commercial loan program with LTVs up to 75% and rates starting at 6% Terms 1/2/3/5 years. You must have 700 plus credit score for this program and the closing times on this loan can take up to 40 days. The client must show all tax returns, rent rolls, personal, and business bank statements. Profit and Loss statements for up to 2 to 3 years. Underwriting is extensive because it's based on income and credit.
Commercial Hard Money Investing in Miami, Florida