Nationwide Small Balance Loans
Nationwide small balance loans are a great option for businesses looking to finance some higher cost needs. They can also be used for refinancing a project. People love the flexible and streamlined process. The loans are usually large, Fannie Mae provides ones of up to $6 Million and Freddie Mac provides up to $7.5 Million. In this week’s blog post Commercial Mortgage Depot (CMD) helps you understand nationwide small balance loans in New York, New Jersey, Connecticut and Pennsylvania. Speak to our Clifton, NJ team about this great product today!
Requirements for Nationwide Small Balance Loans
Nationwide Small Balance Loans are commonly used to fund small apartment complexes. They are designed to offer more options and a simpler approval process. They can be used for original loans or for refinancing. Approval for refinancing using a Nationwide Small Balance loan is impacted by the annual limit. Eligible entities to apply must be US Citizens, limited partnerships, limited liability corporations, single asset entities, special purpose entities, can hold tenancy in common with up to five unrelated members, and Trusts. Many lenders like to see net worth equal to the amount of the loan and liquidity equal to nine months of principle and interest. Most are used on properties of five or more units.
Typical Nationwide Small Balance Loan Structures
If you are looking to gain approval for a Nationwide Small Balance Loan, you will usually see some of the below set-ups depending on whether you use Freddie Mac, Fannie Mae, or another source.
- Terms of five to thirty years.
- Thirty-year amortization.
- 80% Loan-to-value.
- Flexible pre-payment options.
- Adjustable or fixed rates, or a hybrid of the two.
- Partial or full-term interest only periods.
Pros and Cons of Using Nationwide Small Balance Loans
With Nationwide Small Balance Loan approvals, some lenders prefer to avoid using manual underwriting. Some can offer very competitive interest rates, depending on how much you are asking for. Asking for more money carries more risk for a lender. Many enjoy the streamlined and flexible process for loan approvals and the reduced costs to execute the program. If you need more than a nationwide small balance loan can offer, you may have to re-apply for a better program. You can benefit from the extensive experience of our small market specialists and a combination of features rarely seen in other loan programs. Many businesses use this product to grow their portfolios, improve return on assets, or meet other financial goals.
Commercial Mortgage Depot (CMD) is here to help your business grow through a nationwide small balance loan serving the New York, New Jersey, Connecticut and Pennsylvania markets. Speak to our Clifton, NJ team about this great product today!
