Conventional Loan Overview
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Summary
Conventional loans facilitated through Legis Commercial Capital (LCC) must be primarily used for the acquisition or refinance of commercial real estate. Projects are secured by a 1st Deed of Trust/Mortgage on commercial real estate having a maximum Loan to Value of 60%, depending on property type.
Typical Project Structure
• 50% to 60% LTV
• 40% to 50% Applicant Equity
Maximum Loan Amount
• $4,000,000
Maturity and Amortization
• Real Estate – Up to 25 years
Maximum LTV
• Multi-Use – 60%
• Special Use – 50%
Eligible Use of Proceeds
• To purchase or refinance commercial real estate.
Eligible Property Types
• Multi-use owner occupied properties are preferred.
• Office: Professional, Condominium, Medical, Dental, and Veterinarian.
• Industrial: Heavy and Light Manufacturing, Warehouse and R&D Flex
• Retail: General
• Special Use: Assisted Living Facilities, Adult Care, Day Care Facilities, Funeral Homes, select quick service restaurants.
Property Types To Avoid
• Special Use: Gas stations, hotels/motels, car washes, auto dealerships, night clubs, athletic/fitness clubs, larger restaurant properties (greater than 6,000 SF), or any start up special use property.
• Most investor properties
• Multi-family
Rate Option / Prepayment Penalties
• Variable rate options based on WSJ prime rate adjusted quarterly as well as 90-day and 1-year Libor indexes.
• Fixed rate options based on 3 year and 5 year Libor Swap Rates.
• A minimum 5 year declining prepayment penalty (5/4/3/2/1%) is required.
Underwriting Requirements
• Prior ownership and management experience required.
• Minimum FICO of 680
• All loans are Full Recourse and require the personal guarantee of any and all individuals or entities holding 20% ownership interest or more.
• Owner occupied: 1.25x Minimum Debt Coverage Ratio (DCR) for the most recent FYE and Interim period is required.
• Income Properties: Minimum DCR of 1.40x.
• Individual owners/guarantors: Maximum 40% debt-to-income ratio (excluding rental R.E.)
• For properties purchased in the last 5 to 7 years, the lower of appraisal or purchase price will be used to determine LTV.
• NO historical bankruptcies or cash out refinances.
Occupancy
Owner occupied properties are preferred, however some investor properties will be considered.