Commercial Guidelines
PROPERTY REQUIREMENTS
- First mortgage lien. Participations and joint ventures will be considered.
Loans from $50,000 to $3,000,000
- Loans up to 70% of appraised value
- Appraisal required on all properties by approved Paces Funding appraiser (borrower is responsible for payment)
- Mortgagee title policy required at closing
- Builder’s risk and/or hazard policy naming Paces Funding as additional loss payee required at closing
- Closing attorney selected by Paces Funding
LOAN PROVISIONS
Up to 70% LTV
- 12 month term
Interest rate minimum 10% per annum
Origination fee minimum 3% of loan
- Customary closing costs and fees paid by borrower
- Appraisal by Paces Funding approved appraiser
- Interest due on the first of each month
- Extension fees beyond original term may apply
BORROWER REQUIREMENTS
- Completed borrower application
- Historical financial operating statements and projected future pro-forma
- No credit score requirement
- Executed contract for purchase and detailed construction budget, if necessary, from contractor required
- Adequate financial reserves to cover expenses of closing and continued borrowing
- Exit strategy to retire loan
RELATED POSTS
Can You Use a Hard Money Loan to Buy a House?
If you're looking at your mortgage options and wondering whether you can use a hard money loan to buy a house, you need to know that it's possible - but it's only advisable in certain situations. Here's what you need to know. Can You Use a Hard Money Loan to
5 Ways to Find Distressed Commercial Properties
Many real estate investors branch into commercial real estate – and often, they’re looking for distressed commercial properties. But if that was a path you were interested in taking, how would you find the right places to buy? Check out this guide, which offers five ways to find distressed commercial
Does the Next House You Sell Need a “Zoom Room”?
Working from home has changed a lot about the real estate market – most notably, what buyers are looking for in new homes. That’s where the “Zoom room” comes in. Does the Next House You Sell Need a Zoom Room? You may have already seen the phrase Zoom room in