Why use a Commercial mortgage lender instead of a local bank?

Mortgage lending is our specialty and we do it well. Unlike large institutional banks, we concentrate strictly in commercial and residential mortgage loan products.  Unlike local banks we do not require the yearly reporting on your financial status and we also offer the following:

• No Financial reporting
• No deposit relationship
• No life insurance
• No pledge on your residence

Our team of mortgage specialists will guide you through the entire process until your loan has been approved and funded. Whether you need a business loan, construction loan, financial loan planning, or a residential mortgage, we can approve your loan.   Commercial property is vastly becoming the next big investment - don't start out with the wrong financing or the wrong advisor. Learn more about our Commercial mortgage financing programs - CALL NFM TODAY! 800-291-7900.

PORTFOLIO Multifamily and Mixed Use Loan Program

Overview

Property Type: Minimum of 5 units on Multi; Small balance mixed use, office, office/retail, strip mall, stand alone commercial, SFR used as commercial or with commercial zoning

• No gas stations, hotel/motel, gas stations, assisted living w/med disperse, dry cleaners on premises, funeral homes w/crematorium, used car lots
• No properties requiring environmental phase 2
• No properties with underground oil tanks

Loan Size: Target loan amount $100,000 to $25,000,000

Loan to Value: Maximum 1st lien LTV of 80% purchase. Secondary financing cannot exceed 90% LTV to include seller held or additional pledged collateral.

Amortization/ Maximum maturity of 20 years. All loans must fully amortize.

Maturity:

Debt Coverage: Debt coverage will be determined using the 5-year fixed rate.

The DSC ratio must be 1.20x (20 year amortization).

Occupancy: 80% minimum at the time of origination.

Cash Out: Cash out refinances will be permitted with the following underwriting adjustments:

LTV maximum 75%

Acceptable Markets: Nationwide

Collateral: Lender must be provided a secured 1st lien “fee simple” position.  Assignment of rents and leases standard.  If owner occupied business, lender will be provided UCC-1 on all business assets if required.

Borrower can be allowed to buyout PPP on either loan program for a 1% fee upfront, .5% rate increase and 25bps increase in reset margin.

Standard bank doc prep fee charged on all loans $750.00

Key Principals: Individuals with 20% or more ownership of the project are considered key principals and must have financial strength commensurate with the credit request. Current personal F/S and two years tax returns are required.

Recourse: While a full recourse guarantee is typical, loans can be originated with limited guarantees from key principals for projects with above average underwriting characteristics including but not limited to a loan to value of 70% or less.

In some circumstances loans can be non-recourse with standard carve-outs for fraud, theft, willful harm to the property, non-payment of taxes and assessments or insurance premiums, or permitting substantial deferred maintenance of the project.

Personal Credit: Key principals with a minimum FICO score of 600. Regardless of score, no major derogatory credit, mortgage or installment lates last 12 months.  Cannot have been a defendant in mortgage foreclosure proceedings in the past 7 years or bankruptcy in last 3 years.  Minor revolving late payments, collections less then $500 last 24 months will be considered on a case by case basis as long as the overall credit is of good quality.

Reserves: Reserves for capital items, taxes and insurance will be underwritten but generally not collected.