Bank Terms for Apartment & Commercial Property

Size: $1million to more than $50 million
‍Term: Up to 30 years
‍Interest Rates: Fixed rates vary, floating rates based on margin over LIBOR
‍Amortization: Up to 30 years
‍Maximum LTV: 75-80%
‍Minimum DSCR: From 1.20x
‍Interest-Only Period: Partial-term and full-term


Advantages

  • Will do smaller loan amounts
  • Can finance troubled assets for borrowers with strong supporting financials
  • Faster close than agency
  • Flexible/Negotiable prepayment options/terms



Disadvantages

  • Occasionally more rigid down payment and loan limit based on net worth of borrower
  • Often (not always) requires some sort of recourse for borrower
  • Often shorter amortizations and shorter fixed periods than CMBS and agency loans
  • Can be stricter with cash out refinances (not always, varies by lender)



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