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)