Permanent Loans

Also referred to as a permanent mortgage or permanent financing, a Permanent Loan is a long-term financing vehicle, usually with a 15-30 year maturity period, that is often obtained at the completion of a construction project, frequently used to repay the non-permanent (short-term) construction loan.

Madera Finance offers permanent loans for Multifamily, Office, Retail, Self-Storage, Industrial, Special Purpose, Mobile Home Parks, and Single tenant.

Below are the conditions for our Permanent loans:

FNMA-FHLMC

Loan Amount: $750,000 and up

Loan-to-Value: 80% Maximum

Minimum DSCR: 1.25 (may be lower for low LTV loans)

Loan Term: 5, 7, 10, 12, 15 and 30 Years

Amortization: 15-30 Years (I/O available on a select basis)

Origination Fee: Customary 1%

Borrowing Entity: A bankruptcy-remote Special Purpose Entity

Recourse: Non-recourse, excluding the usual 'bad boy' carve outs

Reserves: Required for Replacements, Tenant Improvements & Leasing Commissions

Conventional

Loan Amount: $150,000 and up

Loan-to-Value: 65 to 75%

Debt Yield: 9-12%

DSCR: case by case basis, maybe global 1.25

Interest Rate: fixed and variable rate options

Loan Term: 5-10 years

Amortization 15-30 years; interest only on select basis

Origination Fee Customary 1% minimum $5,000

Borrowing Entity: Bankruptcy remote special purpose

Recourse: Typically full recourse

Reserves: maybe required for taxes and insurance

Prepayment: Varies by lender

Assumability: Typically not available

CMBS

Loan Amount $2,500,000 and up

Loan-to-Value 75% Maximum

Debt Yield 8.25% Minimum (10% for Hotels)

Loan Term 5 and 10 Years

Amortization 20-30 Years (I/O available on a select basis)

Origination Fee Customary 1%

Borrowing Entity A bankruptcy-remote Special Purpose Entity

Recourse Non-recourse, excluding the usual 'bad boy' carve outs

Reserves Required for Replacements, Tenant Improvements & Leasing Commissions

Prepayment Loans may be defeased after a lockout period

Assumability 1% for qualifying borrowers

Ownership Transfers Very limited, except for estate planning purposes

Questions? Contact Madera Financial today at (520)241-0969
to discuss your Permanent Loan needs.

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