frontstreet

What types of real estate loans does Front Street offer?

Front Street offers several short- and long-term real estate loans for real estate investors and developers.

We finance properties including:

  • Single-family homes
  • Multifamily
  • Townhouses
  • Condominiums
  • Urban Infill
  • Mixed-use properties
  • Planned Unit Development (PUD)

Commercial real estate loans can help businesses and investors achieve their goals of acquiring or improving properties, refinancing existing debt, or constructing new buildings. Each type of loan has unique features, terms, and eligibility requirements. In this article, we will outline the specifics of the following commercial real estate loan types: acquisition loans, short-term bridge loans, light rehab loans, heavy rehab loans, new construction loans, and long-term refinance and refinance cash out loans.

Acquisition Loans

Acquisition loans are used to purchase commercial real estate properties. The loan amount is based on the purchase price, with a typical loan-to-value (LTV) ratio of up to 75% of the property value. The term of an acquisition loan can range from one to ten years, with interest rates ranging from 4% to 12%. The eligibility requirements for an acquisition loan typically include a minimum credit score of 650, a debt service coverage ratio (DSCR) of at least 1.25, and a minimum down payment of 10% to 30%.

Short-Term Bridge Loans

Short-term bridge loans are used to bridge the gap between the purchase or sale of a property and long-term financing. These loans have a term of six months to three years, with interest rates ranging from 6% to 12%. Short-term bridge loans typically have an LTV ratio of up to 80% and eligibility requirements that include a minimum credit score of 600, a DSCR of at least 1.0, and a minimum down payment of 10% to 20%.

Light Rehab Loans

Light rehab loans are used to finance minor improvements or renovations to a commercial property. These loans have a term of one to three years, with interest rates ranging from 6% to 12%. Light rehab loans typically have an LTV ratio of up to 80% and eligibility requirements that include a minimum credit score of 650, a DSCR of at least 1.25, and a minimum down payment of 10% to 20%.

Heavy Rehab Loans

Heavy rehab loans are used to finance major improvements or renovations to a commercial property. These loans have a term of one to three years, with interest rates ranging from 6% to 12%. Heavy rehab loans typically have an LTV ratio of up to 80% and eligibility requirements that include a minimum credit score of 650, a DSCR of at least 1.25, and a minimum down payment of 10% to 20%.

New Construction Loans

New construction loans are used to finance the construction of a new commercial property. These loans have a term of one to three years, with interest rates ranging from 6% to 12%. New construction loans typically have an LTV ratio of up to 80% and eligibility requirements that include a minimum credit score of 650, a DSCR of at least 1.25, and a minimum down payment of 20% to 30%.

Long-Term Refinance and Refinance Cash Out Loans

Long-term refinance and refinance cash out loans are used to refinance existing debt on a commercial property or to obtain cash from the equity in the property. These loans have a term of five to 30 years, with interest rates ranging from 3% to 9%. Long-term refinance and refinance cash out loans typically have an LTV ratio of up to 80% and eligibility requirements that include a minimum credit score of 650, a DSCR of at least 1.25, and a minimum down payment of 20% to 30%.

Ready to get pre-approved? Get started

Related questions