Real Estate Loans – Castle Commercial Capital

Get Approved For A Commercial Mortgage

Whether you’re an experienced real estate investor or just beginning your journey, check out this video to learn valuable tips on How to Qualify for a Commercial Loan.

This 5-minute video on how lenders look at commercial mortgage opportunities will help you understand how to bring a deal that gets approved.

Learn the importance of the 4 C’s upon which lenders focus when evaluating your real estate deal. Get these right and greatly improve your odds of getting approved!

THE REAL ESTATE LOAN PROCESS:

The process of obtaining a real estate loan is relatively straightforward, but the devil is in the details. No loan gets final approval for funding without the sign-off of the Underwriter and the Legal Department. We help guide you through the each step of the process to make sure that all of the i’s get dotted and the t’s get crossed so you can secure your funding.

Our Loan Officers are experts in guiding you through the loan process and getting you to the finish line!

Step #1

Loan Prequalification

Submit prequalification form with preliminary property, borrower, and loan information to see if your loan meets lending criteria.

Step #2

Preliminary Loan Offer

Receive preliminary loan offer with loan rate, terms & conditions. If offer is acceptable, then sign and return it, complete the loan application and pay the due diligence deposit.

Step #3

Due Diligence Period

Submit all documentation required by lender to verify income, property financial performance, owners, investors, budget, operating agreements, expenses, etc. Appraisal, title work, and survey are ordered.

Step #4

Final Approval & Closing

Receive final loan terms. If acceptable sign and submit with loan commitment fee. Loan closing is scheduled with title company. Loan closes, funds are dispersed, loan related fees are paid.

REAL ESTATE LOANS:

There are many different types of loans available to Real Estate Investors. Knowing the purpose of the loan and the property type are key in determining the appropriate loan type to best meet your needs.

There are many options available for each type of loan since lenders set their own loan terms based on their lending criteria. Fortunately, we have relationships with many vetted lending sources and can help you find the right loan that provides the most efficient funding for your unique situation.

Some of the more common loan types are listed below along with a short description.

Commercial Mortgage

Used to acquire or refinance Commercial Real Estate (CRE) such as Office, Retail, Industrial, Mixed-Use, Warehouse, Self-Storage, Hotels, etc.

Portfolio Loan

A special category of long-term financing where multiple Single Family Rentals (1-4 units) or multiple multifamily sites (5+ units) are rolled into one large loan encompassing all of the properties in the portfolio.

Multifamily Loan

Used to fund multifamily properties (5+ units) such as apartments, senior housing, assisted living, nursing homes, student housing, etc. that either have tenants or are ready for occupancy.

Fix N Flip Loan

A special category of Bridge Loan used to fund the acquisition and rehab of Single Family Residential properties (SFR), which include properties with up to 4 units.

Bridge Loan

A short-term loan (12-24 months) used to finance properties that don't qualify for traditional financing because of poor condition, low occupancy, or poor financials. Bridge Loans are also used to quickly complete acquistions.

Long-Term Rental Loan

Long-term financing for Single Family Residential properties (SFR) of up to 4 units that either have tenants or are ready for occupancy.

LENDERS:

Castle Commercial Capital is both a lender and a broker with access to a deep investor base and to a network of vetted lending partners and financial products. This dual role helps us provide the optimal financing package for your needs, whether it’s in-house lending or getting your loan closed with a proven lending partner.

Just as there are many types of loans available to Real Estate Investors, there are many types of lenders. Each lender has specific objectives for participating in the commercial real estate lending market. We understand the business drivers for different types of lenders allowing us to choose the right lender for you – GREATLY INCREASING YOUR CHANCES FOR APPROVAL!

Some of the more common types of lenders are listed below along with highlights of some of their key business drivers.

Banks

Most people have heard the old adage "Banks only lend to people who don't need money..." If you have a good balance sheet and cash reserves, bank funding may be an option.

Agency Lenders

Several different government agencies lend money for real estate. They promote socially desirable projects with specific property requirements and offer long-term, low-interest loans with high transaction cost and timing.

Life Insurance Companies

Use real estate lending as a way to tie long-term assets (real estate) to long-term liabilities (life insurance policies). They generally invest in high-valued properties and have these loans have high transaction costs.

Conduit Lenders

Aggregate many commercial real estate loans to create Commercial Mortgage Backed Securities (CMBS), which are sold to investors. Properties and loan documents must meet strict underwriting guidelines.

Pension Funds

Use real estate lending as a way to tie long-term assets (real estate) to long-term liabilities (pension payments). They are willing to accept more risk and sometimes take equity positions, joint venture, or issue mezzanine financing.

Private Lenders

Private lenders include Investment Funds, wealthy individuals / families, "hard money" lenders, etc. These lenders often have more flexibility to close on loans that have merit, but don't fully meet the requirements of other lenders.

LOAN PROGRAMS:

We offer many different loan programs to suite the requirements of your project, and your needs as a borrower. Below are the basic details of some the most popular loan programs. There are many additional loan programs beyond those listed below, and one of those may be right for you. (Note: market conditions do cause fluctuations in loan programs, rates, and fees. Therefore, the information below is subject to change.)

Please call us about your specific project and we can determine the best loan program for you, and, discuss current rates and the latest loan program details.

Freddie Mac Small Balance Apartment Loan Program

Freddie Mac’s program is ideal for stabilized multifamily properties with good cash flow.

Loan Purpose:

Acquisition and Refinance

Loan Amount:

Min $750,000 to $7,000,000

Maximum Loan to Value:

75-80%

Term:

5, 7, or 10 years

Blanket Loan for SFR and Multi-Family Portfolios

Blanket Loans, aka Portfolio Loans, are for pools of at least 5 properties that are stabilized with good cash flow.

Loan Purpose:

Acquisition or Portfolio Refinance w/Cash Out

Loan Amount:

$500k to $100 Million

Loan to Value:

Up to 75% LTV

Term:

5 or 10 years

HUD/FHA Multi-Family Housing Insured Loan Program

HUD’s Multifamily program is a good option for the construction, substantial rehabilitation, purchase and refinancing of multifamily housing projects. HUD funding will generally take longer and have more requirements, but provides the lowest interests rates and longest amortization available from any lender.

Loan Purpose:

Acquisition or Refinance

Loan Amount:

Min $2,500,000, no maximum

Maximum Loan to Value:

83.3-85.0%, 80% cash out

Term:

35 years (no balloon payment required)

Loan Purpose:

New Construction or Substantial Rehabilitation

Loan Amount:

Min $4,000,000, no maximum

Maximum Loan to Value:

85%

Term:

40 years (no balloon payment required)

Commercial Hard Money – Bridge Loans

We offer fast, equity-based loans to borrowers who cannot qualify for a bank loan or who simply need capital quickly. All hard money loans are secured by commercial properties. Loans are available on most property types, including multifamily apartments, office, retail, industrial, warehouse, mixed-use, self-storage, or special purpose facilities. These lenders have the most flexibility and properties in any condition will be considered.

Loan Purpose:

- Purchase
- Refinance
- Cash-Out Equity
- Rehab

Loan Amounts:

$200,000 to $15,000,000

LTV:

- 65% for Refinance
- 70% for Purchase

Loan Term:

1 – 3 years, interest only

Fast Closes: Average deal closes in 10-14 days

Low FICO score acceptable: Marginal Credit Ok

NO Financials: No Tax Returns, No Documents, Stated Options

NO Debt Service Coverage Ratio Requirements

NO Seasoning Requirements for Title or Funds

1st & 2nd Mortgages, Cross Collateral

Single Family Residential

Fix N Flip Loan Program

Short-term bridge loans for purchase and rehab of Single Family Residential. 100% of rehab cost included in loan.

Loan Purpose:

Acquisition, Rehab and/or Refinance

Loan Amount:

Min $100,000 to $1,300,000

Maximum Loan to Value:

Up to 90% of purchase, 100% of rehab, 70% of ARV

Term:

12-24 months

SFR & Multifamily

Long-Term Rental Loans

Long-term loans for residential rentals with no personal Debt-to-Income requirements.

Loan Purpose:

Acquisition or Refinance, Cash Out Options Available

Loan Amount:

Minimum – SFR $100,000 / Multifamily $250,000

Maximum – SFR $2 million / Multifamily $3 million

Loan to Value:

SFR up to 80% LTV for Acquisition, 70-75% LTV for Refinance

Multifamily Acquisition up to 75%, Refinance 70-75% LTV

Term:

30 years

SBA 7(a) Business Loan Program

If you owner-occupy 51% or more of the property, you will need to use an SBA loan. The SBA programs are generally intended to encourage small business investment in real estate, equipment, working capital and inventory. These loans can be for up to $5 million and have maturities of up to 25 years for real estate and up to 10 years for equipment, working capital, or inventory. Visit our Business Loans page to learn more.

“Successful business owners and investors choose their partners wisely. We work closely with you to develop and execute funding strategies to meet your unique business needs.”