What We Can Do For You
Whether you need mortgage services or want to see if you pre-qualify, we offer an array of services to meet your needs.
FINANCING BY TYPE OF PROPERTY
Multifamily (5+ Units)
Any building that consists of multiple separate housing units within one residential building
- Often classified as high-rise, low-rise, or garden apartments.
- Can include duplexes, townhomes, and apartment buildings with common areas and facilities such as entrances, lobbies, elevators, walks, or grounds.
Development that allows for more than one type of use in a building or set of buildings
- Can be combination of residential, commercial, industrial, office, institutional, or other land uses.
- Common types include a ground floor retail, restaurant, or office space with rental or owner-occupied apartment upstairs.
Includes tint shops, tire stores, and mechanic property types
- Can be a stand-alone facility or located in a retail center or warehouse.
- Facility must meet local and federal EPA standards and requirements and contain no underground storage or holding tanks.
Property typically used for manufacturing, assembly, and the storage and distribution of goods
- Generally less than 25,000 square feet.
- Includes sufficient plumbing and lighting to accommodate personnel but must not contain any type of heavy machinery, welding operation, crane, or hazardous materials.
Mobile Home Parks
Parcels of land zoned and developed for use by occupants of mobile homes
- Can sometimes include amenities such as pools and laundry facilities.
- Should be fairly well-maintained and provide on-site water and waste management services.
Structure designed for general commercial occupancy and normally subdivided into smaller units
- Implies a general business use that does not include retail, manufacturing, or warehouse operations.
- Can be single or multi-tenant.
- Medical office and business office combinations are acceptable as long as there is no surgical center on the premises.
Can be a single, free-standing structure or a multi-tenant strip center that may or may not include anchor stores
- Typically includes a mix of small inline stores that focus on conveniences like nail and hair salons, bank branches, dry cleaners, liquor stores, and sandwich shops
- Can be owner-occupied or bought as an investment
- Must be occupied and stabilized
Permanent structure that provides storage to individuals and business customers
- Units are typically leased on a short-term basis and are used to store household goods, excess inventory, or archived business records
- Property must be stabilized by being fully leased with rents at market rates
Primarily used for the storage or distribution of goods and materials
- Can also be used for manufacturing, assembly, and research and development
- Characterized by a small-sized facility (usually less than 25,000 square feet)
- May include office space
- Cold storage and transit warehouses with truck terminals are included in this category
Used for early childhood, handicapped, and adult or senior care or development centers
- Includes kindergartens, nurseries, or children’s preschools
- Contain light kitchen facilities, activity rooms, and multiple restrooms
- Properties and more residential in style than schools
- Financial services
- Commercial Loan Calculator
Documents Needed for Home Loan
13 documents you may need to provide before you can get a home loan:
W-2 forms: People who have a conventional job will need to provide W-2 forms from their employer or employers. for one or two years.
Pay stubs: Expect to provide enough pay stubs to cover a month of employment. If you’re paid weekly, for example, you’ll need the last four.
Bank statements: Lenders will want to see, at a minimum, your last two months of bank statements. Keep in mind that it’s important to provide all the pages, even if some of them are blank.
Tax Returns: Most borrowers will be asked for at least the latest year’s tax return, all schedules included. If you’re self-employed, have a side business, own rental property or have a lot of employee business expenses, you’ll probably need at least two years of tax returns, both business and personal, Fleming says.
Identification: A driver’s license probably will suffice. If you don’t have a driver’s license, a passport or state-issued ID card is suitable.
Proof of legal U.S.: Residency if you’re not a U.S. citizen. For permanent residents, that means a green card. People who are in the U.S. on other types of visas may be asked to provide additional documentation. Lenders aren’t going to offer a loan to someone who is in the U.S. only temporarily, Fleming says.
Proof of Military Service: If you’re a veteran, you’ll need your DD Form 214, Certificate of Release or Discharge from Active Duty, if you want a loan from the U.S. Department of Veterans Affairs program. If your service was before 1950, the document may have another name.
K-1 And Business Tax Returns: If you own a business or are self-employed. you will need to document all the income you claim in your loan application. Exactly what documents you need will depend upon your business structure. Fleming recently prepared a 57-page report for a client documenting the income he received from multiple ventures. Some self-employed borrowers will be asked for a profit-and-loss statement for the current year.
Sources of Funds: If your submitted bank statements include any large or unusual deposits, you’ll have to verify where you received the money. “Lenders are rabid about that right now,” Fleming says. “You can’t just write a letter of explanation like you could in the old days.” If you sold stock or other assets, for example, you’ll have to provide copies of all the documents required to verify the sale and the proceeds received.
Gift Letter: If someone gave you money to help with your home purchase, you’ll need to document it. “A lot of first-time homebuyers receive gifts from family members to help them,” Gutierrez says. The lender will want a gift letter that will include information about the donor’s relationship to you, the amount of the gift, the date and the purpose. The donor may be asked to prove that he or she has the resources to make the gift, probably by providing bank statements. Lenders may also have gift forms for the donor to sign.
Alimony or child support documents. A lender may not ask if you receive alimony or child support, but you are welcome to volunteer that information if you want to use those funds to qualify for the loan. You may be asked for your divorce settlement, proof that your ex is paying regularly and verification that the payments will continue for two or three more years.
Proof of Reserves: Lenders want to make sure you can afford to make payments once you’ve closed, and most will want to see enough cash to cover at least three months of payments. Showing cash reserves and assets is also helpful if you have a weak job history or mediocre credit, Fleming says. “If there’s any weakness at all in the file, showing more assets is useful,” he says. “When you close escrow, we don’t want you to be broke.”
Cancelled rent checks: Buyers who don’t own another home will be asked to prove they’ve paid their rent on time, especially if they don’t have a significant credit history. That can usually be done with a verification form filled out by a landlord or 12 months of cancelled rent checks.
SBA 504 Loans
SBA 504 Vs. Conventional Mortgage: The SBA 504 program requires less money down. You can put as little as 10% down in the form of cash, seasoned equity in land, or a combination of the two on multi-use properties. If the property is special use OR the business is considered a start-up, the equity injection is 15%. If it is special use AND the business is considered a start-up, the equity injection is 20%. Scenario Injection Required:
- Established retail business is leasing and wants to buy or construct a new location 10%.
- Established Assisted Living Facility is leasing and wants to buy or construct a new location 15% (Special Use).
- Ground up construction for a Hotel 20% (Special Use/Start-Up).
- Conventional Bank Structure SBA 504 Program.
- Loan to value typically 75% or less Up to 90%.
- Loan term typically 5 or 10 years, 20 – 25 years on 1st mortgage, 20 years on 2nd mortgage.
- Amortization typically 20 years or less, typically blended at 23 years.
- Balloon or call Provision: Yes, No.
- Fees typically 1% or less.
- Prepayment penalty: Yes.
- Do I have to move over my deposits? NO, you can bank wherever you like.
SBA 504 Benefits:
- Less of an injection requirement
- Greater flexibility on where you bank
- No call provisions
- Lower interest rate
- Longer fixed rate options
Look for an SBA 504 Specialist
When looking for such loans, search for lenders who specialize in them — doing so will help streamline the process and provide you with better service and options. Although this is not a complete list, this is a good start.
The intention is to get you thinking about what the SBA will want to see from you to give you a guarantee. If you do not have all of the items because you are a startup, that’s okay; the lender will help you put together projections. A few of the items you may need for funding SBA loans:
- Federal income tax for previous 3 years’ personal financial statement
- Cash flow projections for one year, resume of all owners
- Copy of business lease, 3 years’ business federal income tax returns
- Profit and loss statements, certificate of doing business
- Accounts receivable, aging history of business
- How The SBA loan can help
- Loan application, statement of personal history
What real estate properties qualify for an SBA 504 loan?
To be eligible for an SBA 504 loan, the borrower’s business must be set up as a for-profit business and also must fall within the size standards set by the SBA. The size standards set by the SBA dictate that the business must not have a tangible net worth in excess of $7.5mm and must not have an average net income in excess of $2.5mm after taxes for the preceding 2 years.
Any real estate property that might be used to expand, relocate, reorganize, or restructure the business, and is owned by more than half citizens or permanent residents, qualifies for an SBA 504 loan.
Businesses that are not eligible for SBA 504 loans are ones that exceed the size standards, those that are non-profit, illegal businesses, businesses owned by foreigners, or those located in foreign countries, as well as lending institutions, to name a few.
Why SBA 504 Loans Are Best for Small Businesses
SBA 504 loans are the best solution for small businesses because they allow businesses 90% financing. Most other loans require businesses to come up with at least 25% of the total cost of their projects, plus expensive closing costs.
If your business does not have good credit or any credit at all, or if you aren’t currently producing the kind of money that you could be producing if you could get a loan to expand with, then the SBA loan is perfect for your business.
What an SBA 504 Loan Needs from the Borrower
SBA 504 loans are broken up in the following way: Typically, an SBA 504 structure includes a loan secured with a senior lien from a lender covering up to 50% of the project cost, a loan secured with a junior lien from a Certified Development Company (CDC) (backed by a 100% SBA-guaranteed debenture) covering up to 40% of the cost, and a contribution of at least 10% equity from the borrower.
This does not mean that the borrower can just quit paying and forget about the loan. The guarantee is between the CDC and the SBA — the borrower is still responsible for 100% of the money borrowed both from the CDC and the other lending institution. This is why SBA 504 loans are easier to obtain than any other loan. Whatever your business or personal financial services needs may be, we can help you figure them out and get organized to put your best foot forward to get you the loan you need. To find out how we can help you specifically, please give us a call at 215-752-4200 today!