COMMERCIAL INVESTMENT
AND SMALL BUSINESS
REAL ESTATE
LOAN RATES AND INDEXES

Below you will find informtion on our current loan programs and common loan indexes.  For questions regarding a specific loan scenario, please contact our office and speak to a Consultant, or go to our Commercial Loan Quotes page.

Documents to help you with our changes:

Approval probability sheet.pdf

Underwriting Standards by Property Type.pdf

If you wish to speed your transaction, please go to our online application

 Rates and programs are subject to change without notice. Information as of:
Monday, November 17, 2008.


Excelsion Mortgage
Small Business & Commercial Loan Programs

Rates Quoted Below Include A 1% Origination Fee.

General Property Types

Loan Program

Owner-User

Investor

Multi-Purpose

Special Purpose

Multi-Purpose

Special Purpose

Quarterly Adjustable

4.25%

4.75%

4.75%

5.00%

Annual Adjustable

4.50%

5.00%

5.00%

5.25%

Adjusts Every 5 Years

7.17%

 7.67%

7.67%

7.92%

10 Year Fixed*

-

-

-

-

Notes:

Rates are for bank portion up to 65% LTV; SBA 2nd rate will be less & have a 20/20 amortization

75% max LTV multi-purpose, special purpose will be less.

* 10 Yr. Fixed Adjustments:  Borrower may choose a Quarterly Adjustable based upon WSJ Prime OR a rolling 5 Year Fixed Adjustable based upon the 5 Yr. FHLB "Bullet" Index after the initial fixed period.  Borrower must choose an option before loan documents are drawn.

Hotel/Motel

Loan Program

Age

<=10 Years

11 to 19 Yrs

>= 20 Years

Quarterly Adjustable

4.75%

5.00%

5.25%

Adjusts Every 5 Years

7.67%

7.92%

8.17%

Notes:

National franchise, limited service, interior corridor, 125 units or less, DSC>1.25 in most recent FYE & interim, positive/stable trends.

All other hotel properties.  Reduced LTV.

Multi-Family/Mobile Home Pks.

 

Construction to Perm

Loan Program

Rate

Pre-Pay Penalty

This program is available on Owner-User Properties ONLY

1 Year Adjustable

5.59%

3%, ... 1%

Construction Rate Range:

3 Year Fixed

6.95%

3%, ... 1%

5.00%

6.00%

5 Year Fixed

7.57%

5%, ... 1%

Permanent Loan

All programs:  DSC 1.15 to 1.2; 25/25 amortization; adjusts quarterly at 300 BP over 3 Mo. LIBOR after the fixed period; no life cap; no interim caps; rates shown are for loan amounts of $3MM or greater; add 50 BP to fee for loans of $1MM to $2.99MM; minimum loan of $750K.  Max LTV of 75%.  Yield Maintenance pre-pay option reduces rate, call for quote.  Rates quoted at PAR.

Choose "general property type" program above under "owner-user," borrower recieves market rate at conversion.  SBA 504 programs ONLY.  Rates quoted are at a 1 point cost.

Enhanced MultiFamily

Term

75% LTV/1.20 DCR

65% LTV/1.35 DCR

55% LTV/.55 DCR

Pre-Pay Penalty

5

6.34%

6.27%

6.21%

4.5 YM, then 1%

5

6.94%

6.87%

6.81%

5%, .., 1%

7

6.48%

6.41%

6.35%

6.5 YM, then 1%

7

6.92%

6.85%

6.79%

2 yr. LO, 5%, ..., 1%

10

6.52%

6.45%

6.39%

9.5 YM then 1%

10

7.16%

7.09%

7.03%

5%, 5%, ..., 1%, 1%

15

6.81%

6.74%

6.68%

14.5 YM, then 1%

15

6.87%

6.80%

6.74%

7.5 LO, 5,5,4,4,3,3,2,1

30

7.14%

7.07%

7.01%

15 YM, then 1% rem.

5 + units and mixed use (<25% NRA commercial).  $750K to $5MM loan amount.  All loans fixed for the indicated term.  Non-recourse available.  Avg. FICO >= 680.  Ne Worth <= Loan Amount.  90% occupancy for at least 90 days prior to closing.  YM - Yield Maintenance.  LO - Lock Out.  Numbers indicate years of YM or LO.

NOTES:

Borrower pays for 3rd party reports, including credit, appraisal, and environmental (Phase 1 or Scan). A Good Faith Deposit will be required with a signed Letter of Interest. In the event the loan is not approved, any remaining funds from the GFD will be returned to the borrower. If the loan funds, any excess is applied to origination and processing fees.

Fees: Processing: Loans < $1MM - $990, $1MM-$3MM $1,480, >$3MM $1,980, payable at funding. Application and admin fees apply to multi-family and mobile home park loans ONLY.

Pre-payment Penalties: Variable Loans come with a standard 5 year 5% flat penalty. All other loans come with a standard 10 year declining pre-payment penalty: 10%, ... 1%. Other penalty options available, call for pricing adjustments. 20% annual pre-payment allowed without penalty, except on 10 yr. fixed.

Rates, loan programs, and underwriting criteria are subject to change without notice. This is not an offer to lend or to extend credit.

**Risk Based Pricing: All loans are subject to adjustment for age and property condition, unstable historical operations, multi-layered borrowing structures, credit scores, subsidized housing, high percentage of singles and other exceptions to the underwriting guidelines.

Start Ups: Add a minimum of .25% to rates quoted above.

Rates and Programs subject to change without notice.

General Program Guidelines

Property Type:

Multi-Purpose 

Special Purpose

Hospitality

Multi-Family

Loan Limits

$500K to $10MM Investor; SBA 504 - $5MM

$500,000 to $4,000,000

$500,000 to $4MM Investor, SBA 504 - $6MM

$1,000,000 to $10,000,000

Property Types

Office
Retail
Mixed Use
Industrial Office
Warehouse
Mixed Retail w/Office
Light Manufacturing & Industrial
Medical Office
Dental Office

New Auto Dealers
Light Automotive
Auto Tire & Brake Centers
Assisted Living Grocery Stores
Daycare Centers
Car Washes
Funeral Homes
Restaurants

Strong Franchise

Interior Corridor
Construction

< 20 years old

< 125 units

5+ units

Mid-rise

>25,000 population

MAX LTV/CLTV

75%/90%

65%/85%; 80% to $4MM

65%/85%

75%/75%

Loan Terms

25 Year Fully Amortizing, Minimum 1.2 to 1.3 DCR (1.0 for SBA 504); 30/10 available on investor.

DCR: 1.2 pur., 1.3 refi.

Minimum Credit Score

660 for owner-user; 700 for investment

660

660

660

Minimum Equity

10% to 20%

10% to 25%

20%

15%

Minimum Collateral

1st TD-Real Property

1st TD-Real Property

1st TD-Real Property
UCC-1 on all FF&E

1st TD-Real Property

Loan Programs
(Initial Term)

SBA 504
USDA B&I
1 Year Variable
3 Yr. Fixed
5 Yr. Fixed
10 Yr. Fixed

SBA 504
USDA B&I
1 Year Variable
3 Yr. Fixed
5 Yr. Fixed

SBA 504
USDA B&I
1 Year Variable
3 Yr. Fixed
5 Yr. Fixed

1 Year Variable
3 Yr. Fixed
5 Yr. Fixed

Indexes

Rates are tied to 3, 5,7, or 10 Year FHLB "Bullet" Index or WSJ Prime

Available Programs (Remaining Term After Initial Fixed Period)

At the end of the initial fixed term, the loan will automatically convert to the Borrower’s choice of:

A)  5 year fixed rate tied to FHLB + margin, adjusting every five (5) years

OR

B)  WSJ Prime Rate + margin, adjusting quarterly

Borrower must make the selection above before closing the loan.

Rate Locks

30 day rate locks are available at no cost.

60 day rate locks are available with a deposit of $2,500 or 0.50% of the permanent loan amount, whichever is greater.  NOTE:  The 60 day rate lock deposit is refunded at the time of closing if the interest rate at the time the loan is closed is the same as the rate stated in the Commitment Letter.   If the interest rate declines and the Borrower chooses to lower the rate rather than take the rate stated in the Commitment Letter, the deposit is retained by the lender.

Rate locks are not available on the 10 Year Fixed program.

The Rate is locked as of the date of the Commitment Letter.

Enhanced Multifamily Guidelines

Property Types

Multifamily (5+ units) and Mixed Use (commercial allowed up to 35% or Net Rentable Area.
Loan Size: $750,000 to $5,000,000, depending upon market.
Loan Terms: 10 year term preferred (5-30 years available); 30 year amorization, I/O on select transactions.
Location: Nationwide major metropolitan areas; secondary markets considered.
Loan-To_Value: Up to 75%.
Debt Service Coverage: 1.20x minimum.
Interest Rate: Fixed rate spreads over comparable term U.S. Treasuries; Actual/360 and 30/360 quotes available.
Liability: Recourse and Non-Recourse available depending upon location and loan parameters.
Borrower: Single Asset Entity (SAE) required for Non-Recourse transactions; Guarantor(s) must be U.S. Citizens, Minimum average credit score of 680.
Pre-Payment: Yield Maintenance or Declining prepayment options.  Last 90 days open at par.
Assumption: Subject to review and 1% fee.
Escrows: Taxes and Insurance required; Deferred Maintenance / Cap. Ex. as needed.
Survey: No survey requried with survey endorsement, except for FL, IA, NM, NY, OH & TX.
Application Fee: Based upon estimated processing costs and required 3rd Part reports.
Funding: 45-60 days after receipt of due diligence items and an executed Application.


Index Rates

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Excelsion Mortgage is a direct lender offering commercial loans for real estate investors and small business owners (SBA 504, including construction to permanent) and other commercial investment resources.  Excelsion Mortgage is a d.b.a for C. S. Higdon, Inc. and operates under California Department of Real Estate broker's license number 01425676.  Excelsion Mortgage is an Equal Opportunity Lender.  Privacy Policy:  Excelsion Mortgage will never, ever sell, rent, trade, exchange, or barter any personal information of its clients at any time. 


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