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 on the West Coast and $5,000,000 in other areas.

• Location

  Urban and suburban US properties.  Major metropolitan areas only.

• Collateral

  
  Improved income producing commercial properties. At this time we ARE NOT lending on residential real estate.
  

• Rates

  From 9.99% - and 4 points.

• 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

  $500,000 - $8,000,000

• Location

  Urban and suburban US properties

• Collateral

  Improved commercial. No: raw/improved land, construction, gas stations, car washes, or other environmentally risky properties.  We are not lending on single family.

• Rates

  Declining Prepayment penalty; 20 to 25 year terms, 20-25 yr amortization.
  5 Year fixed from 5.00%
  10 Year fix from 6.75%
  

• Max LTV

  Up to 65% LTV, depending on the loan scenario
  Based on FIRREA compliant appraisal within past 6 months

• Credit Score

  FICO > 650, 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 to 6 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

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.