Commercial Loan Borrower Criteria

Summary

Lending Criteria

Loan Application

Types of Loans

Residential or Commercial
• Land Acquisition
• Development
• Construction

Bridge Loans
• Income producing properties for rehabilitation
• Short-term needs while transitioning to a conventional loan

Underwriting Criteria

Consolidated Mortgage generally lends within the following loan-to-value ratio ranges depending upon property type, location and other relevant factors associated with the property.

• Land Acquisition - 60% of the appraised value of the land
• Development - 65%
• Construction - 75%

Consideration is given to the loan-to-cost ratio to determine a Borrower's overall equity in the project. In the case of a construction loan we require the cost breakdown for all hard and soft construction costs in combination with the appraisal for the land and project as complete.

Consolidated Mortgage prides itself in knowing and understanding our Borrower's needs. We proactively request information not only to better serve our Borrowers, but also provide Investors with an overview of the Borrowing Entity and strength of the Guarantor(s).

Documentation Requirements

The following are some examples of information required for each loan:

• Preliminary Title Report
• Purchase or option agreement for the property
• Documentation for Borrower entity (Articles of Incorporation, Operating Agreement, etc.)
• Appraisal of the project dated within 12-months
• General liability or hazard insurance
• Current Financial Statements and two most recent tax returns for the Borrower and Guarantor(s)

If applicable:

• Phase I Environmental Report
• Architectural plans for the project
• Construction cost breakdown

Interest Rates

Depending on the loan type, interest rates typically vary between 12% and 16%.

Points

Points may vary depending on the project. Typically, they may range from 2.0% to 4.0%.

Term

Loan terms are generally between 9 to 18-months. Extensions may be offered subject to additional fees. Longer term loans are considered on the overall project viability and strength of the guarantors.

Personal Guaranty

Personal Guarantor(s) are required on most loans.

Loan Size

Loan size may vary between $200,000 to $100 million.

Geographic Area

We have underwritten loans in the following states: Nevada, Arizona, Utah, California, Oregon, Texas, and Missouri.

Please do not hesitate to inquire about loans in states other than those mentioned above.

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