There are approximately 100 commercial banks lending in Florida that provide fixed and variable rate loan programs in the southeast U.S. Commercial banks are more traditionally known for shorter term financing of five years or less, providing both variable and fixed rate lending for construction and unstabilized properties. More recently, a growing number of the larger regional and nationwide banks are able to offer fixed rate loans of 7-10 years through 3rd party affilations known as “swap-desks”. Both pricing and risk exposure (LTV) can vary greatly depending on the risk profile of “both” the sponsor as well as the property. Banks are typically more focused on underwriting the sponsor more than the real estate collateral. Significant federal bank regulations have targeted commercial banks recently, reducing their tolerance for risk in commercial lending. These lender programs are typically full-recourse above 60% LTV.
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