Real Estate
SBA and HUD Loans

SBA and SBA Look-a-Like Loans:
SBA loans are perfect for many borrowers and their situations. They are only for commercial real estate properties where the borrower will owner-occupy at least 51% of square footage of the building. The SBA Look-a-Like program has more aggressive parameters whereby the property only needs to be 20% occupied. The remaining buiding square footage can be leased to tenants for additional income.

SBA loans can be used for property acquisitions, expansions, or rate and term refinances. The maximum LTV on an SBA loan is 90% with a 10% down payment. However, some property types will not qualify for 90% LTV in which case the borrower may need 20-30% down payment. One of the major strengths of an SBA loan is that the borrower's future income projections can be used when underwriting the loan. Therefore, a borrower may buy a property with a weaker historical income and turn it around.

HUD Loans:
HUD has a special program for loan amounts greater than $1,000,000 up to 100,000,000. The program provides capital for apartments, nursing homes, assisted living facilities and mobile home parks for new construction and rehabilitation as well as purchasing and refinancing. For new construction or rehabilitation the maximum LTV is 90% with a 10% down payment. For purchase or refinance the maximum LTV is 85% with a 15% down payment.

For more information on any of these programs, we urge you to contact us for a free consultation!