Looking For Small Balance 30-Year Amortization Under $1M
I heard they exist, but I haven't found a single lender that would do 30-year amortization on balances under $1M. Does anyone know of such a lender?
[{"id": "hp1k0gw", "text": "What type of property?", "replies": [{"id": "hp1u4gb", "text": "What state?", "replies": [{"id": "hp3nwmd", "text": "Are you open to personal guarantees?", "replies": [{"id": "hp3psb4", "text": "Always?", "replies": [{"id": "hp4migr", "text": "You\u2019re going to have to be.", "replies": [], "depth": 5}], "depth": 4}, {"id": "hp54ko5", "text": "Yes, Multifamily, Florida", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hp1u75z", "text": "Not sure what you are looking for, but the only way you are getting a 30 year am on something is through conventional 1-4 financing. \n\nNo bank does 30 year ams, 25 is the top end, with most on 20s.\n\nThe only was to get 30 year money is on large multifamily that's Freddie/Fannie and you're typically talking north of $10MM.", "replies": [{"id": "hp1yjg8", "text": "Separate from their standard MF product which you are thinking of, Freddie also does small balance (originators like Greystone, CBRE, Capital One) with 30Y amort and possible partial IO (5/7/10 yr balloons). But small balance here means 1-10M, not below 1M like OP wants.", "replies": [], "depth": 2}, {"id": "hp2cvpa", "text": "LOLWUT.\n\nIn CRE financing everything, literally, is negotiable. Including amortization. I have several loans with 30 year amortization on everything from mixed-use, to MF (well over 4 unit limit you cite, no need to be over $10mm as you also mistakenly cite), medical office, etc. including two that are under $1mm via local non-bank lenders.", "replies": [{"id": "hp2ug83", "text": "Well as a banker that specializes in these loans with a $500MM portfolio, it doesn't happen other than in very select circumstances. \n\nSo either you have certain connections, but 99% CRE financing is not going 30 years.", "replies": [{"id": "hp2x368", "text": "Glad you're not my banker in that case. Happy that 100% of my CRE portfolio has 30Y AM.", "replies": [{"id": "hp35zxg", "text": "Feeling is mutual. The $40MM that just booked in the last 3 months, says differently....", "replies": [{"id": "hp36jhr", "text": "Too bad your clients don't have better, more flexible options. You know, the kinds readily available across the industry.", "replies": [{"id": "hp3dhap", "text": "Lol. We have about $25B in commercial loans and less than 1% have anything over 25 year am. He'll the government doesn't do that with SBA loans.\n\nThe two previous banks I worked for were over $100B in loans and again less than 1% do that. Not even the smallest community banks offer 30 year ams.\n\nSince you are getting these 30 year ams on commercial, why don't you post your bank, banker, and their contact number on here? I'm guessing they would love that business.", "replies": [{"id": "hp3jlcj", "text": "Anyone who wants the name of my debt broker is free to DM me.", "replies": [], "depth": 8}, {"id": "hp4djbd", "text": "Here are a few with small balance (sub 5m) perm product with 30 yr am:  \nA10  \nFranklinTemp/Benefit Street  \nUC Funds  \nPlum  \nSabal CMBS  \nLoan Core  \nReadyCap SBL Multi  \n\n\nAll except for ReadyCap offer commercial at 30 yr am.", "replies": [{"id": "hp550op", "text": "Boom! Thanks! I'll reach out!", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}, {"id": "hp3hwup", "text": "Most institutional groups use floating IO, no idea how this guy thinks 30 year AM is impossible (with a balloon).", "replies": [{"id": "hp3jq5y", "text": "Bizarre how he keeps doubling down too.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "hp2ely5", "text": "I believe you are referring to a 30 year fixed interest period. The OP is referring to the amortization period. \n\nMany lending institutions offer 5, 7, and 10 year fixed interest periods on a 30 year amortization.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hp1xeq8", "text": "Don't listen to the naysayers.\nIt does exist, check with all the small local banks. \nI got a 30 year fully amortizing with 5 year fixed from a small local bank. Under $1M will almost certainly require a personal guarantee.", "replies": [{"id": "hp1y3xq", "text": "What is your asset type?", "replies": [{"id": "hp1yb4x", "text": "Mixed, primarily storage.\nNot SBA", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hp21gy9", "text": "Just the am or do you require a 30 year tern as well?", "replies": [], "depth": 1}, {"id": "hp2208b", "text": "Janover Ventures", "replies": [], "depth": 1}, {"id": "hp23mlt", "text": "These exist but try regional banks and credit unions rather than national lenders. Keep in mind many lenders offering 30y AMs will still size the loan at a 25y AM (so your DSCR will need to remain at 1.2-1.35x depending on asset class at a 25y AM even though they're offering you a 30).", "replies": [{"id": "hp2d36o", "text": "This is true though I did get a non-bank lender to UW at 30y AM. It was for sure a negotiation.", "replies": [{"id": "hp3etod", "text": "Mind sharing the non-bank lender? I\u2019m in the market looking for financing at the moment", "replies": [{"id": "hp3jol1", "text": "DM me the location...they're local-only.", "replies": [], "depth": 4}], "depth": 3}, {"id": "hp3mxlb", "text": "Non bank lenders have a lot more flexibility. Given that many will do I/O, having a loan amortize at all is already more security than they often require.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hp297x0", "text": "Check Western Alliance and Fifth Third\u2026maybe they\u2019ll look maybe", "replies": [], "depth": 1}, {"id": "hp2fkgs", "text": "I just received the below quotes for a $600,000 multi-family loan in Los Angeles\n\n- JP Morgan Chase\n4.2% 7 yr fixed/30 yr am, $2000 cost \n\n- Mortgage Broker\n3.5% 7yr fixed/30 yr am, $12,000 cost ($6k in closing costs + $6k commission) \n\nChase will offer small loans but they aren\u2019t the most competitive in terms of interest rates for small loan but very low closing costs. \n\nI am waiting to receive a few more quotes from local and regional banks. \n\nThese loans do exist but you have to search for them a bit. \n\nWhat type of property and where is it located? \n\nI am interested to hear if anyone else has a local or regional institution in or around LA for these type of loans.", "replies": [], "depth": 1}, {"id": "hp2jibp", "text": "Yes I\u2019m a CRE direct lender, Forbix.com. We do FHA, mezz, bridge, CMBS. Let me know!", "replies": [], "depth": 1}, {"id": "hp2k3wr", "text": "Snl, but not all have 30 a lot are 25. Probably need to call around.", "replies": [], "depth": 1}, {"id": "hp2t97a", "text": "My bank does but the credit needs to be strong and with full recourse", "replies": [], "depth": 1}, {"id": "hp32tbo", "text": "Your bank.", "replies": [], "depth": 1}, {"id": "hp36zra", "text": "My commercial loans are like that. 20% down 25-year amortization with 5-year openers on the interest rate.", "replies": [], "depth": 1}, {"id": "hp3m0cy", "text": "What type of property do you mean", "replies": [], "depth": 1}, {"id": "hp4bb1j", "text": "Reach out to Velocity, they can help.", "replies": [], "depth": 1}]