TYPES OF LOAN PRODUCTS
With those considerations in mind, below is an overview of loan products offered through CredifX and the lenders in its network.
Our network includes various government-sponsored enterprise (GSE) loan products for Fannie Mae, Freddie Mac, FHA/HUD and SBA loan products available for stabilized or planned multifamily; and affordable (LIHTC, Section 8), student, senior and manufactured housing.
FIXED AND FLOATING RATE SENIOR FINANCING
Conduit and balance sheet lenders with long-term and short-term, fixed and floating rate loan products for stabilized and transitional properties. This type of financing is typically available through conduit lenders, banks, and life companies. Up to 75% LTV, 1.25x DSCR, 5-10 year terms and 30-year amortization.
Financing for transitional properties being repositioned (from fix-and-flips rental properties/portfolios to institutional grade commercial assets). Bridge loans are temporary, with a term of 1-3 years, and are typically obtained for the purposes of securing long-term financing once the asset management plan has been completed. These can be high leverage loans provided underwriting of the asset’s future value is sufficient to cover a lender’s exit.
HARD MONEY LOANS
Typically a more expensive form of bridge lending in which the borrower must list the commercial property as collateral. Hard money loans are normally offered by private lenders who don’t have to meet the same standards as mainstream commercial lenders. Because of this, hard money loans carry a higher interest rate. These loans are temporary and are only offered when time is of the essence.