free bootstrap templates

COMMERCIAL
REAL ESTATE FINANCING

SBA 7A AND SBA 504 LOANS
PURCHASE AND REFINANCE

Mobirise

FIRST CHARTER FINANCIAL
CORPORATION

We are a full service Commercial Mortgage Company. We are in the commercial financing business and we do not sell leads to other companies. Financing Commercial Real Estate is our only business. We close loans.

Lenders that you find on the Internet are all different. Many will try to fit you into the loan products that they sell. That is why you need to consult with an independent mortgage company. We know what is available in the market. We can discuss your needs and goals and suggest what would be the best loan for you. Then we will place that loan for you. We will stay with you through the funding. We always represent the borrower, not the lender. 

SBA 7A AND SBA 504 LOANS

There are two SBA programs that we use. Each has different parameters. First is the SBA 7a program. These are loans up to $5,000,000. We use this program primarily for borrowers who are purchasing a hotel or building a hotel. These loans typically are made by lenders who are in the preferred lender program of SBA. They underwrite according to SBA guidelines and fund the loans themselves. These loans are typically for a 20 or 25 year term and up to 85% of cost.
Interest rates vary greatly between individual lenders and can run from Prime rate plus one point to Prime plus 2.5 points. The statutory prepayment for these loans is 5 - 3 -1. So after 3 yeas they can be per-payed without penalty. We have been successful in refinancing older SBA loans into new CMBS loans.
The second SBA program is the SBA 504 loan. We also use this program for hotel purchase and hotel construction This is a combination of two loans. A conventional first mortgage of 50% of the project cost. Then a second mortgage made by a Community Development Company and bearing an SBA guarantee equal to 30% of the project cost. The total amount of financing is 80% of total project cost. Financing can be as much as 80% of $16,500,000 total cost.
The term of these loans is 20 or 25 years. The interest rate on the CDC portion of the financing is currently around 3.5%. The interest rate on the conventional portion of these loans can range from 5%% to 7%. You can expect a blended rate around 6%. There is a prepayment penalty on the CDC portion of the loan roughly equivalent to yield maintenance for the first 10 years. On the bank portion it is the usual for the funding bank.
The interest rate that you pay on SBA financing is heavily dependent on your Personal Financial Statement. If you have a weak statement your rate will be high if you can get a loan. SBA loans require a personal guarantee from the borrower.
Also in this category is USDA loans. These are loans intended for rural areas. In general they are similar to SBA 504 loans but are one lender with a USDA guarantee. The usual loan limit is $10,000,000. 


WE FINANCE ALL KINDS OF COMMERCIAL REAL ESTATE
WE DO MANY DIFFERENT KINDS OF LOANS TO FIT YOUR NEEDS
Click on the picture

Mobirise

CMBS CONDUIT LOANS

CMBS loans are loans for stabelized real estate. They are low interest rate 10 year fixed loans, Funds come from the bond market. We do tham for hotels, retail, office, industrial.

Mobirise

AGENCY MULTI FAMILY

Agency loans are from Fannie Mae, Freddie Mac and HUD. Government agencies. These are low rate long term fixed loans. They are the best loans for multi-family properties.

Mobirise

SBA 7A SBA 504

We do SBA 7a loans up to $5 million. SBA 504 to $13 million. These are federal guranteed loans. Their down payment is lower but their interest rates are higher than conventional loans.

Mobirise

BRIDGE LOANS

This is a polite term for private and hard money loans. In general the interest rate is higher and the maturity is shorter. However in some cases this is the only type of loan that is available.

WE DO ALL KINDS OF COMMERCIAL REAL ESTATE  LOANS

READ OUR ECONOMIC NEWS LETTER

CONTACT US

Send us your information. Fill in the form and we will send you our Economic News Letter and other information.

Do you want to start a new loan? Tell us what you need in a message on the form. 





First Charter Financial Corporation
8204 East Del Caverna Drive
Scottsdale AZ. 85258
AZ CMB 0922527
NMLS ID 181100