A Commercial Equity Line of Credit (Also know as a CELOC), “sits” in second lien position behind any first loan, can be an outstanding financial tool for either the commercial investor or small business owner. Bottom line - This loan provides flexibility.
Use proceeds for basically whatever you want, rehab a new property, use cash as the down payment on a new building acquisition, recapitalize your business, etc. Pay down the line whenever and use again when you want. In addition this equity loan can be a viable alternative to the traditional commercial cash out refinance.If your existing loan is solid, and you simply want access to your equity, why go through the expense and trouble of traditional commercial cash out refinance?
Just like the commercial second mortgage, this Commercial Line has no or 3rd party fees – period. The costs consist of an origination fee of 1%, paid to us, and 1% paid to the funding bank (see attached fee agreement). Both are received at the funding of the line.
Designed for the small commercial investor or business, this loan requires little documentation as well. No business or personal tax returns requested for owner occupants. We just need proof of insurance and a copy of your last mortgage payment. For investors, we normally only need to provide copies of your Schedule E’s (last 2 years), proof of insurance, copy of leases and a copy of your last mortgage payment. That’s it.
Commercial Equity Line:
Lines from $200,000 to $500,000.
Borrower needs 700+ credit score
Rate is tied to Prime. Currently as low as 1% plus Prime (As of 2/1/08).
Commercial Line sits in second lien position (or first lien position), behind any existing first mortgage - no need to refinance.
Letter of Intent/Preapproval within 72 hours.
Closing normally take 30 days.
Line structured under "Evergreen Contract". Meaning line goes on indefinitely as long as the borrower isn't late.
Whether you would like to renovate another property, consolidate business debt, get cash to purchase another property, launch a new venture, you can make it happen with this new program.
