Delta Plus Commercial
Mortgage Company offers loans from equity investors commonly referred
to as “Hard Money Loans” or “bridge loans” or
hard equity loans” The interest rate on these loans are higher
than usual but the underwriting standards are greatly relaxed. The loan
still needs to make sense however. All of these loans are fully secured
first position mortgage loans. Various properties, borrowers and situations
do not have tremendous appeal to front line banks and mortgage companies
for a variety of reasons. Some of these reasons include:
- Fast closing situations
required for purchases
- Properties in
great locations but in need of rehab.
- Borrowers with
less than perfect personal credit or bad credit.
- Small loan size,
under $500,000.
- Bailout of delinquent
loan.
- Small “Debtor
in Possession” Loans.
- Equity pending
sale of a property.
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While
traditional lenders view this segment of commercial borrowers as unacceptable,
we have identified situations where we feel the loans can be properly
and safely underwritten. Generally speaking, we feel that the following
compensation factors make a loan acceptable for this program.
- Low Loan to Value,
average 60-75%
- Single purpose/bankruptcy
remote entities or trusts for ownership required of the borrowers,
unless borrowers have an impeccable credit history
- Usually, a 6-12
month interest reserve collected up front.
- Higher rate, averaging
10%+ APR on a one year adjustable to borrower.
- Higher Loan to
Value allowed with impeccable credit or guarantors.
- We will consider
loans up to $2,000,000 and a minimum of $150,000.
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