FAQs

Q?What are the credit score requirements?
A.

Underwriting includes review of the borrower’s history at repaying other debts. Thus, credit scores are an integral part of our programs. Higher credit scores allow better rates and/or higher loan-to-value ratios while lower scores may impact the borrower’s ability to obtain financing. We prefer scores above 680 but will review requests with lower scores (minimum 650).

Q?What are minimum and maximum loan amounts?
A.

Commercial real estate loan from $250,000 to $100 Billion.

Q?What types of property do you fund?
A.

We fund most commercial property types including Multi-use (office, retail, industrial, warehouse), Multifamily (minimum 5 units), Special-use. We typically avoid Gas stations and Churches.

Q?What is an owner-occupied commercial property?
A.

In commercial real estate, owner occupied (also known as owner-user) is defined as a property that is at least 51% occupied by a business owned by the principals/guarantors. Please note that in order to qualify for SBA financing, the business must occupy at least 51% of an existing property or 60% of a new construction project.

Q?Is the underwriting different if it is owner occupied?
A.

Yes. The underwriting for owner occupied properties gives primary consideration to the cashflow of the owner’s business. Investment properties are underwritten based upon the lease income and expenses of the property, as well as, underwriting factors such as vacancy, management and reserves. Secondary consideration may be given to outside sources of income, but the business or property should still demonstrate sufficient strength and cashflow.

Q?What is a Special-Use Property?
A.

Special-use is commonly associated with properties that are either designed for a particular type of tenant, or are modified for use by a particular type of tenant. They are not suitable for multi-use (use by a wide variety of tenants such as an office, retail or industrial building). The modifications are significant enough that future users of the property would have to incur significant costs for conversion to their use. Examples of special-use include automotive repair (if pits or other permanent modifications made to property), car wash, restaurant, night club, event center, funeral home, assisted living and self-storage.

Q?What is an investment property?
A.

A property would be considered as an investment if it is 100% leased to tenants that are unrelated to the owner, or the owner’s business occupies <50%.