Q. What type of commercial
property loans do you offer?
Q. What documentation does
my client need to qualify for you commercial loans?
Q. Where do you fit into the big commercial mortgage lending picture?
Q. How will the underwriting
process work for my loan?
Q. What type of properties
do you loan on?
Q. What type of customers
need the type of financing offered by SF Partners Mortgage?
Q. Will you do loans for
corporate owned property?
Q. What size loans do you
finance?
Q. What type of points
and fees does SF Partners Mortgage charge?
Q. How do Brokers get paid?
Q. How do I get started?
Q. Do you have any tips on getting more commercial mortgage leads?
--------------------------------------------------------------------------------
Q.
What type of commercial property loans do you offer?
A.
For a Type A commercial property (i.e., retail, office, apartment,
warehouse, ect) we offer financing up to 80% of the property
appraised value depending on the credit score. For Type B commercial
properties (hotel, etc.) we offer financing up to
75% of the appraised value of the property which is also dependent
on the credit score. We offer an adjustable product that is fixed
for a one through five year period and then adjusts for every year
there after. All rates are based on a margin over Wall Street Prime
or six month Libor depending on the program chosen. Our commercial
property loans can be utilized for both purchases and cash out/term
refinances. Our maximum loan amount for Type A property is
$2,000,000.00 and for Type B property is $1,500,000.00
--------------------------------------------------------------------------------
Q. What documentation does my client
need to qualify for your commercial loans?
A. As a stated income/asset lender we require very little
documentation. Our loan decision is made primarily on the credit
of the borrower and the value and type of property being secured.
For all commercial mortgage loans, we require
We do not require tax returns, bank statements, audited financials
or any other form of sophisticated financial documentation. While
we want to see that there is sufficient income to cover the projected
loan payments, we do not seek to verify that such income exists
but rather rely upon the integrity of the borrower and general
business sense in evaluating that factor. If a borrower would
like to provide his/her tax returns in order to achieve a better
rate, we do offer a light documentation program that does require
two years tax returns. See the loan program/rates section herein
for more information.
To see our requirements for our lite documents (click
here).
--------------------------------------------------------------------------------
Q. How will the underwriting process
work for my loan?
A. Our goal is to close every loan within
thirty days of issuing a pre-approval letter. Once
we receive the 1003 Application, credit report and loan request
form, we can get you a conditional pre-approval within 24 hours.
Most of our pre-approvals have only six to eight conditions that
need to be fulfilled in order to close the loan. These
conditions include:
- appraisal of the property
- a limited Phase I environmental
- verification of employment
- copies of any current leases on the property
- proof of adequate insurance coverage on the commercial
property
If the loan is a purchase transaction, we will need:
- a copy of the purchase contract as well
- an authorization from the borrower to verify that the borrower
has the funds to make the down payment
If the loan is for a refinance and the borrower’s current
mortgage is not reported to the credit bureaus, we will also
require:
- authorization from the borrower to verify the last twelve
months mortgage payments
SF Partners Mortgage will take care of the bulk of the processing
work. We will order the appraisal, the environmental inspection
and title as well as make sure that the title company has the
appropriate documentation to close the loan and do so in a timely
manner. We will also verify employment as well as the mortgage
history and funds to close information, if necessary. Consequently,
there is little, if any work, for the broker to do.
-
if loan is being submitted under our lite doc program, we will
need two years personal and business tax returns.
--------------------------------------------------------------------------------
Q. What type of properties do you loan
on?
A. We provide loans secured by
a diverse range of commercial properties. We divide
our properties into two categories commonly referred to as
Type A and Type B.
Type A Properties are those that
we consider standard commercial income producing properties.
Because these are considered low risk, we can offer our best
rates and terms for loans up to $2,000,000.00 secured by:
- retail properties
- office properties
- multi-family properties
- warehouse properties
Type B properties are higher risk
due to their unique nature and limited use and while our rates
for these properties are extremely competitive the terms are
more stringent than for the kinds of property listed above. The
maximum loan amount a Type B property is $1,500,000.00. These
properties include:
- hotel/motel properties
- day care properties
- convenience store properties
--------------------------------------------------------------------------------
Q.
What type of customers need the type of financing offered by SF
Partners Mortgage?
A.
We have four main types of customers:
-
The first type
of customer is one who typically does not have the credit
necessary to qualify for a conventional loan. We offer
commercial loan programs for borrowers with a minimum middle
credit score of 620 or higher as long as those borrowers have
not had a bankruptcy or foreclosure in the last five years.
-
The second
type of customer is one that irrespective of their credit
history is not able to obtain conventional financing because
that customer is unable to verify income and assets or has a
limited operating history on the property (i.e. less than two
years). Because all of our loans are on a stated income and
stated asset basis, there is no need for any documentation
verifying income or assets and, as a result, the potential
borrower can obtain financing with us without the need of having
to prove income or assets.
-
The third type
of customer is one that even if he/she has the documentation
necessary to verify income or assets simply does not want to go
through the arduous process necessary to get financing with a
traditional lending institution. Because of the nature of the
documentation needed and the amount of time involved in having
to prepare and produce financial documentation in an acceptable
format to a conventional lender, it can sometimes take up to two
months or even longer to underwrite a commercial loan with such
a lender. At SF Partners Mortgage, we strive to close every loan
within 30 days of issuing a pre-approval. We can do this because
we do not require the voluminous documentation that other
conventional lenders require allowing us to close a loan in a
much shorter time period.
-
Our fourth type of customer can not obtain conventional
financing simply because the amount of the loan is too small. At
SF Partners Mortgage, we can do loans for as low as $200,000.00.
Our entire focus is on the small commercial borrower and we
believe that borrower is entitled to competitive financing and
great service even if the loan size is small.
--------------------------------------------------------------------------------
Q. Will you do loans for corporate owned
property?
A. Yes, as long as the primary officers and owners of the
corporation agree to also be on the loan and/or act as
guarantors. These individuals must also meet our minimum credit
requirements.
--------------------------------------------------------------------------------
Q. What size loans do you finance?
A. We finance loans ranging in size from $200,000 to $4,000,000
as our focus is on the
small commercial property owner/buyer.
--------------------------------------------------------------------------------
Q. What type of points and fees does
SF Partners Mortgage charge?
A. We do not look at points and fees as a way for us to make
money but merely as a way
for us to cover our costs in providing loans to our customers.
As a result, our fees and points are extremely fair and significantly
lower than those charged by hard equity lenders. Typically we
charge 1% of the loan balance plus standard lender fees in the
range of $1,000 - $1,500. Fees for third parties such as appraisers
and environmental inspectors are either paid up front to us by
the borrower or directly to those third parties. Other third
party fees such as title and recording fees are paid at closing.
In many cases, most of our borrowers are appreciative of the
fact that SF Partners Mortgage as well as the broker has not
gauged them with the amount of points and fees charged at closing.
--------------------------------------------------------------------------------
Q. How do Brokers get paid?
A. Brokers can get paid in two ways. First we will pay brokers
yield spread on a case by case basis per separate negotiated
agreement. Second, brokers can charge the borrower up front points
and collect that amount from the funds collected at closing.
Typically, most of our brokers charge 2% of the loan balance
being funded.
--------------------------------------------------------------------------------
Q. How do I get started?
A. Simply submit us a deal today. You should also download
a broker application complete it and send it to us. We will need
the completed broker application before a loan can close.
|
