Can an Alt-A Loan Be a Smart Choice for My Business?
You may have heard of Alternative Lending loans or Alt-A loans and wondered, what are those? Alt-A loans are loans that just miss the bank type of financing but are too good to be thrown into private money. It is a fast growing and rapidly expanding part of the commercial mortgage marketplace. It seems there are new sources coming to market every few months.
We intimately understand these loans and have become adept at closing them.
Features of an Alt-A Loan:
Loans with NO TAX RETURNS
Loans to borrowers with credit down to a 550 score
Loans to borrowers with BK or foreclosures after just 2 years (most banks want at least four)
Financing for Foreign Nationals
Small loan sizes (apartment loans as small as $200,000 for example, tough to find financing for)
And much more…..
Alt-A Loan Pricing:
With 5 year fixed rates typically around 7-8%, with longer 30 year amortizations, the pricing is not that bad. Most SBA loans of prime+2.5% are now at 8% and that is adjustable, these are fixed rates! A 5 year fixed at 7.5% on a 30 year amortization is equivalent in payment to a 20 year bank loan of 5.7%! So the pricing really is not prohibitive, especially for the fact that the buyers will NOT QUALIFY for bank financing. It really is a good loan product.
Closings:
CLOSINGS TYPICALLY TAKE ONLY 35 DAYS! So it is quicker too.
If you would like more information about alternative loans, contact us today.
Richard G. Geib – President
Manatee Mortgage Consultants
Tampa Bay, Florida
Manatee Mortgage Consultants
Tampa Bay, Florida