INTRODUCING A LOAN PROGRAM THAT WON’T HOLD YOU BACK!
Loan Amounts from $100,000 – $2 Million
Although we have the ability to provide funding for any size project or loan amount, our streamlined program up to $2 million dollars allows for our fastest turnaround time.
No Tax Returns
For any commercial property that has sufficient cash-flow to cover the property’s expenses and debt service, no income tax returns are needed. It is common for many business owners and entrepreneurs to take advantage of the tax deductions and savings that are permitted when preparing their annual tax returns. This can lessen the actual cash-flow and income being generated by the business making it difficult to use their tax returns to qualify for a commercial property loan.
The ability to qualify for a real estate loan without providing business or personal returns makes it easier for our clients to obtain the cash they need to grow their business and income.
No Income Verification
“Stated Income” loans are an extremely valuable benefit of our commercial loan programs. It allows the borrower to simply “State” the amount of annual income they earn in order to qualify for the income guidelines of the loan they seek. Although the majority of commercial loans are made on the basis of the cash-flow of the income producing property they wish to finance, in the case of an owner/occupied property (one in which the primary business income will be derived from the operation the owner’s business), “stated income” permits the business owner to simply state the amount they earn with no further documentation required.
This is extremely helpful in situations such as a business relocating to a vacant location or expanding to additional locations that are not currently producing income. Another situation would be in the case of an “all cash” business where the income is difficult to document.
The “Stated Income” feature allows us to provide funding for the most challenging loan requests.
Unlimited Cash-Out Refinancing
Most lenders restrict the amount that they allow their borrowers to take cash out of their equity. This limiting requirement prevents the small business owner from capitalizing on investment situations that would enhance the ability to increase the investor’s income, net worth and continued growth. It is important for the small business and commercial property owner to have access to the equity that is tied up in the properties for them to increase their earnings.
At Hyland Financial, we offer the opportunity for unlimited “Equity Cash-Out” when refinancing their commercial properties. We place no restrictions on the purpose or use of the funds provided it is within the criteria of the loan limits.
No Loan Seasoning Requirements
“Loan Seasoning” is the time that a property has been owned by the current individual or entity. Most lenders require a minimum of 12 months consecutive ownership to allow a cash-out refinance.
Our “No Seasoning” loan provision allows for Maximum Cash-Out regardless of the length of time of ownership. There are many times when a property can be purchased quickly for an “all cash price” at a deep discount to its market value. The buyer will then need to refinance the property to free up the cash that was used for the purchase. Our “No Seasoning” requirement helps the small business owner and investor who is trying to take advantage of a changing and diverse market environment.
Fixed or Adjustable Rates
The majority of commercial loans are normally adjustable rate mortgages, although fixed rates are available. The primary difference being that adjustable rate loans (often called ARMS) can offer a greater advantage to the commercial purchaser. While many buyers tend to be more comfortable with fixed rate mortgages, because of the increased interest rate risk to the lender, their rates tend to be higher reflected in a higher monthly payment throughout the entire life of the loan. These fixed rate terms also tend to be of shorter maturity such as a 15 year fixed period.
The advantages of adjustable rate loans in the commercial markets are many. The initial start rate is always lower than the traditional fixed rate program. These can still be a fixed rate for 1, 3, 5 & 7 years becoming adjustable for the remainder of the loan term. Following the fixed rate period, the rate is adjusted according to current interest rate movement. These adjustments also have annual and lifetime caps as a protective feature for the borrower.
This lower “start rate” helps to make new investments more affordable in the beginning years when it is needed the most by providing increased cash flow. The earlier years of ownership permits greater property depreciation during the fixed rate period. As with all commercial property, increased cash-flow is the “name of the game” and the adjustable rate mortgages are the most common loan programs used by savvy investors.
Fully Amortizing Loans
Banks and most commercial lenders use Balloon payments to increase their return on investment and to mitigate their loan exposure. This is often done to the detriment of the borrower. If and when a balloon mortgage comes due, it forces to commercial property owner into a situation where they are forced to refinance. As happens so often, this can be at the worst possible time. If the property owner is experiencing slower sales or they have not gotten the appreciation they had expected….this situation can be a financial disaster.
All of our loan programs, whether they be fixed rate or adjustable rate loans are fully amortized for the entire length of the loan with available terms of 15, 20, 25 & 30 years. This eliminates the possibility of needing to refinance at possibly much higher interest rates.
Common Sense Underwriting
Applying for a bank loan can be a tedious and redundant maze of paperwork and loan committee approvals. After all of the time and expense (and application fees), you find that your loan has been turned down for some inexplicable reason.
We use a common sense underwriting procedure that is similar to the residential underwriting process you would experience with purchasing a home. This makes the entire loan process faster and easier to understand. As always, our application fee is only charged when the loan closes and there are no upfront fees with the exception of the appraisal.
Choice of Several Affordable Payment Options
As previously mentioned, with loan options of 1, 3, 5 7 year fixed rates, you can choose the payment option that is the most affordable for your own situation and time frame.
Approvals within 48 Hours
A signed application and a Tri-merged credit report is all that is needed to apply. There are no upfront fees and a written Pre-Approval will be issued within 48 hours of submission. This Pre-Approval outlines the rates, terms and costs associated with your loan closing. Everything you need to know is clearly spelled out in an easy to understand format. A loan officer is assigned to you to insure your satisfaction.
Fast Closings (30-45 days)
The majority of the loans we provide are closed within 45 days due to our proprietary streamlined process.
