Select Commercial Funding LLC is an apartment lending specialist in the origination of small balance apartment loans from $1,000,000 to $5,000,000. We proudly originate loans nationwide and offer extremely competitive rates and terms. Some of the features and benefits of our program include:
Many lenders only wish to lend in large, urban areas within well populated cities. Our program covers the entire country. We lend in large markets, small markets, and even rural areas. Most national lenders do not feel comfortable going into smaller markets with lower population densities. We are well equipped to handle these requests.
Most local banks prefer to lend short term, usually offering rates fixed for only 5 years at a time. We offer fixed rates for five, seven and ten year terms. In addition, we will amortize our loans for up to 30 years and often offer interest-only periods as well. Local banks often amortize their loans for a maximum of 20 or 25 years which increases the monthly payments and negatively affects the property’s cash flow. It is also very rare for a local bank to offer an interest-only loan. Another huge benefit of our program is that we offer a hybrid/adjustable option. After the initial five, seven, or ten year fixed rate period, we can convert the loan into an adjustable. This option eliminates the balloon payment due at the end of the initial fixed rate period.
Whereas most local banks will limit their LTV ratio to 70% or 75% maximum, we will consider requests up to 80% LTV. On a purchase transaction, a lower down payment means a larger purchase and less cash tied up in the process.
Almost all local banks require that the borrower sign a personal guarantee. A huge benefit of our program is that we offer Non-Recourse financing (subject to standard carve-outs). This allows companies, entities, investor groups and multiple parties to purchase a property without having to have every member sign personally.
Whereas many national lenders charge yield maintenance penalties which create huge penalties in the event of a sale or refinance, we offer easy stepdown penalties. These penalties greatly reduce the cost if you decide to sell or refinance the property at a later date. And, our loans are assumable. If you do decide to sell, a qualified buyer can assume your loan at very attractive terms.
Another huge benefit of our program is that we do NOT require personal or corporate tax returns. We will underwrite your loan using a rent roll and historical operating statements. Our underwriting is common sense and fast. We close most of our loans within 30-45 days from formal application.
We do not charge an additional fee to lock your rate. We automatically lock your rate for 35 business days from signup at no additional cost. This gives us plenty of time to close your loan and offers you the protection against rate increases from signup to closing.
Low Third Party Costs
Other lenders collect very high upfront fees for third party costs, including: appraisal, environmental, engineering, credit, processing, legal, etc. We offer a capped cost option. We collect one smaller amount (as low as $5,000 total) and cover ALL third-party costs with that deposit. This alone can save you thousands of dollars of processing and closing costs.
It is very simple to begin our process. We will discuss your transaction with you upfront to determine if you and your property will qualify. If you would like to discuss a potential transaction with us, please call our office at 516-596-8537. You may visit our website at www.selectcommercial.com for more details.