Program A0

INCOME PRODUCING REAL ESTATE
INCOME QUALIFYING BUSINESS LOAN

LOAN AMOUNT

- Minimum: $500,000
- Maximum: $1,000,000

LOAN TERM

5 Years – 25 Years

RATE

Fixed Rate 7.75% par                    ARM Prime + 4%

PREPAYMENT PENALTY

    5% Months 1-12                              5%Months 1-12
    4% Months 13-24                           4% Months 13-24
    3% Months 25-36                           3% Months 25-36
    2% Months 37 – 48                        2% Months 37-48
    1% Months 49 – 60                        1% Months 49-60
PERSONAL GUARANTEES Personal guarantees are required on all loans.
MAXIMUM COMBINED LOAN TO VALUE(See attached grid for maximum CLTV by individual property types) See Program Matrix for LTV by property type.
LIEN POSITION First liens only
OCCUPANCY
- Owner Occupied
- Non-Owner Occupied
CASH OUT REFINANCES Maximum cash to borrower is $250,000
MINIMUM DEBT SERVICE COVERAGE RATIO - All Properties Subject to Debt Coverage Ratio Minimums. See Program
– Grid for DSCR by Property Type For DSCR Purposes, rent for Owner Occupied units will be determined by current market rents.
– DSCR on business income will also be a method for determining eligibility.
– By exception, personal DTI ratios may also be considered.
CREDIT QUALITY MORTGAGE - Mortgage must be current.
– Mortgage must have been rated for at least twenty-four (24) months.
CREDIT QUALITY CONSUMER CREDIT - All accounts must be paid “AS AGREED”.
– Minimum FICO score 650.
CHARGE OFFS/ COLLECTIONS Charge offs are not allowed in the prior twelve (12) month period.
BANKRUPTCIES Bankruptcies are not allowed in the prior four (4) year period.
ELIGIBLE PROPERTY TYPES See attched list
INELIGIBLE PROPERTY TYPES
  • Churches
  • Gas Stations
  • Salvage Yards
  • Farmland
  • Vacant Lots
  • Manufacturing
  • Condo Hotels
  • Cooperatives
  • Manufactured Housing
  • Mobile Homes
  • Restaurant/Bars
  • Rural properties in areas under 25% built up
  • Any property with a vacancy rate over 15%
APPRAISALS An APEX obtained appraisal is required on all properties.
ENVIRONMENTAL - All loans must have an environmental questionnaire completed.
– All loans require the payment of an Environmental Processing Fee of $500-$1,500.
AGE OF DOCUMENTATION - Credit documents cannot be more than 90 days old.
– Appraisals must be less than 60 days old at the time of closing.
LEGAL REQUIREMENTS
  • Mortgages (required on all real estate collateral) Assignment of rents/leases/profits
  • Recorded UCC-1 financing statements
  • Recorded Security Agreements
  • Affidavit of business use of proceeds
  • Personal guarantee
  • Cross collateral/cross default (as needed)
  • Late charges on note (as per state requirement)
  • Partnership Agreements or articles of incorporation and corporate resolutions (as applicable)
  • Title insurance policies
  • Flood insurance policies (if applicable)
  • Evidence of standard form fire and extended coverage perils insurance
  •  Consent required by lender for permitting subordinate financing
  • Due on sale clauses
  • RESPA disclosures (if applicable)
  • Broker Affidavits acknowledging satisfaction of fees and demonstration of signed Broker Agreements.
PROPERTY TYPES
LTV DSCR
2-4 unit property
70 1.25
5-9 unit property
70 1.25
10-25 unit property
70 1.3
Motel/Hotel
65 1.5
Mixed Use (1 commercial + 1-4 unit residential)
70 1.25
Mixed Use (commercial + residential)
70 1.3
Professional Office Space
70 1.3
Retail Store – Free/Strip Standing
70 1.35
Mobile Home Park
65 1.5
Small Commercial
70 1.5
Office/Warehouse
65 1.5
Industrial properties
60 1.5

UNDERWRITING DOCUMENTS REQUIRED

1) Summary Sheet
2) COMPLETED 1003 Application
3) Credit Report
4) Mortgage Broker Agreement

Call 866-227-4012 or visit www.trinixcommercialcapital.com for a free
no obligation consultation on any of these programs!