Terms and Rates

Hard Money Commercial Bridge Lending Criteria & Rates

2 Week Closings - Apply for a Hard Money Loan

• Loan Size

  From $1,000,000 - most loans fund between $1 and $10 million

• Location

  Urban and suburban US properties

• Collateral

  Improved commercial and investment residential real estate (no raw land or construction/development projects)
  WA & CA - residential owner occupied OK. Other states: OK only if held in a corporate entity and proceeds are used for business purposes

• Rates

  From 9.99% - Most loans fund at prime + 4-5% plus a couple of points + broker points, if applicable

• Terms

  1-3 years, interest only, no prepayment penalty

• Max LTV

  65% LTV*
  Purchase: Value is actual purchase price of the real estate* If borrower has down 30+% in cash, we'll "stretch" the LTV max
  Refinance: Value is Avatar's opinion of the appraised value of real estate for refinances. We have our own review appraiser and principle travel to visit each property.

• Creative/Flexible

  Blanket loans; points and fees wrapped into the loan; multiple income sources considered.

• Due Diligence

  A deposit of about $5 - $6k is required before due diligence process is begun and is credited against the third party costs of underwriting: fair market value evaluation fee, inspections, site visit, legal costs, escrow, etc.

• Down Payment

  The fee is due upon signing of the Letter of Intent and Term Sheet and cannot be wrapped into closing costs.

Flexible Commercial Fully Amortized Loans

45 Day Closings - Apply for a Commerical Loan

• Loan Size

  $1,000,000 - $6,000,000

• Location

  Urban and suburban US properties

• Collateral

  Improved commercial & investment residential real estate
  No: raw/improved land, construction, gas stations, car washes, or other environmentally risky properties

• Rates

  Declining Prepayment penalty; 20-25 yr amortization
  20 yr loans fixed for 2 yrs, then 3 yrs variable - from 7.25%
  20 yr loans fixed for up to 5 yrs - from 8.25%
  20 yr loans variable for 5 yrs - from 8.75%
  25 yr loans fixed for 10 yrs - from 8.29%
  

• Max LTV

  Up to 75% LTV, depending on the loan scenario
  Based on FIRREA compliant appraisal within past 6 months

• Credit Score

  FICO > 600, with no bankruptcy in past 10 yrs.

• Due Diligence

  A deposit of about $5 - $6k is required before due diligence process is begun and is credited against the third party costs of underwriting: fair marketvalue evaluation fee, inspections, site visit, legal costs, escrow, etc.

• Down Payment

  The fee is due upon signing of the Letter of Intent and Term Sheet and cannot be wrapped into closing costs.
  Avatar can be ready to fund in 2 weeks after receipt of these signed documents and due diligence down payment.

• Management

  Owner occupied: Borrower must have experience in the business
  Investors: Must have experience in owning/managing similar property

Owner Occupied Residential Property

Apply for a Residential Property Loan

In general, clients who own their own business, or individual professionals, such as physicians, dentists, etc. may own or wish to buy property that may qualify for a commercial loan. FICO is reviewed, but we do not deny loans based on FICO, bankruptcy or other personal financial history factors. We lend based on the value and equity in the property and the ability of the borrower/guarantor to afford the loan payments now. We make loans that make sense for both the borrower and the lender.

• If a purchase: property will be vested in (purchased and held by) a Trust, LLC, or other corporate entity
• If a refi: property is already vested in a Trust, LLC, or other corporate entity and if this is a cash-out refi, the funds will be used for business purposes
• The loan is at least $1,000,000. The fair market value of the property is at least $1.5 million

Blanket Loans / Additional Collateral

Apply for a Blanket Loan

In some circumstances, a borrower may own additional real estate. If there is sufficient equity in those properties to generate enough capital to meet Avatar's minimum equity (borrower cash investment) requirements, a client can buy a property without layout cash out of pocket. See the example scenario below for how that might work:

• Subject Property

  $1,000,000

• Additional Real Estate

  $2,000,000 (has $800,000 existing mortgage)

• Total Collateral

  $3,000,000

• 65% Avatar Loan

  $1,950,000

• Pay off existing mortgage

  - 800,000

• Balance

  $1,150,000 (enough to buy the subject property and cover closing costs)

Loans by State

Please view our Loans by State page for more information on loans in your state.