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| While nonprime wholesale lenders have become scarce, several commercial mortgage companies are touting programs for virtually any type of property with loan amounts ranging from $150,000 to $100 million. One commercial mortgage product is being touted with loan-to-values as high as 90 percent, and another program is available for land financing.
Broker Fuel is advertising 2 percent referral fees for borrowers with credit scores as low as 530. Under a partnership with Ascente Marketing, the company claims no licensing is required in all 50 states for hard-to-place loans. “Cash in on your FHA leads now,” the Ossining, N.Y.-based company says on its Web site. “You do no work and can earn up to the equivalent of 2 points.” Broker Fuel also promotes commercial lending programs with LTVs up to 90 percent and FICO scores down to 600. Hampton Bridge Advisors Group LLC is touting its access to more than 125 private lenders and hedge funds for commercial bridge loans on “almost any type of commercial property.” The Wood Ridge, N.J.-based hard-money broker noted that some property types — including marinas, RV parks, churches, service stations, hotels and motels, if they are flagged — need to show profitable operations. Hampton said it arranges loans from $500,000 to $100 million, though it prefers loans of at least $3 million. LTVs range from 60 to 75 percent of the lower of the property’s appraised value and the acquisition cost. Fixed-rates are about 12 percent to 13 percent, while lender points will be between 3 percent and 5 percent. Required debt service coverage ratios are between 1.2 times to 1.25 times based on the trailing four quarters of cash flow. Loans are amortized up to 30 years, and loan terms are usually between 12 to 18 months. Hard-money mortgages secured by vacant land are being promoted by Atlanta Mortgage Group Inc. With rates starting at 10.5 percent for loans between $150,000 and $3 million, LTVs are capped at 40 percent. Balloon terms are one to three years, and loans can be used for purchase or cash back. “No personal financial information needed,” the Duluth, Ga.-based broker says in its advertising. “No credit report required.” Among properties types Atlanta said it handles are assisted living, churches, health care and hotels. In addition, it also processes loans for light industrial properties, medical offices, mixed-use properties, mobile home parks and “just about any income producing property.” |
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Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com. e-mail:Â [email protected]
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