Owner-User Loan program Guidelines
Bank Portfolio:
- Purchase & Refinances
- This program does not require 51% owner-user occupancy: it is based on the owner-user’s business income to qualify and owner-occupancy can be less than 51%
- Loan amounts from $500K to $30MM
- 3, 5, 7, 10-year fixed terms
- 15-year fixed term / 15 years amortized
- Max 20-year amortization / up to 85% loan-to-value
- Max 25-year amortization / up to 75% loan-to-value
- Reduced prepayment penalties, call
- Desktop appraisals in environmentals for loan amounts under $1MM
- Allows purchase properties TI’s to be included, call for details
- Multi-state program: CA, OR, WA, TX, CO, NC, FL (call for other states)
- Step-down declining prepays (allow double-monthly payment without incurring a prepayment penalty)
- Special purpose properties restricted to 60-65% LTV
Bank/CDC 504:
- 1st and 2nd TD combo: up to 90% CLTV
- Loan amounts from $1MM to $10MM
- 1st TD: 10 years fixed (up to 50% loan-to-value)
- 2nd TD: 25 years fixed / fully amortized (up to 90% combined loan-to-value)
- Step-down prepayment penalties
SBA 504 FLEX:
- Underwritten through SBA guidelines, not bank (more flexible)
- Nationwide program
- Requires a minimum of 51% owner-occupancy of subject property
- Loan amounts: $500K to $10MM
- 1st and 2nd TD combo: up to 90% CLTV
- 1st TD: 10-year fixed
- 2nd TD: 25-year fixed
- Step-down prepayment fees
- Acceptable markets: 50,000 minimum population
- Minimum credit score: 675
SBA 7a:
- Flexible, nationwide, fixed and quarterly-adjustable programs
- Requires 51% owner-occupancy of subject property
- Index WSJ Prime
- 250 to 350 margin over Prime
- Quarterly ARM for 25-year fixed or amortized over 25-years
- Loan amount: $500K to $5MM (fixed program requires minimum $1MM loan amount)
- Up to 90% loan-to-value
- Prepayment penalty: 5%, 3%, 1%
7a Fixed:
- 25-year fixed terms and amortization
- Loan amounts: $1MM to $5MM
- Call for details
