Large Loan Programs

Permanent loans are typically for 3 to 10 year terms, but can extend to 30 years. They may be interest only or can amortize for 20 to 35 years. Loan amounts might reach up to 97% loan to value and could be up to 100% loan to cost. Fixed rate loans might be priced at a spread over Prime, T-bills or LIBOR. Floating loans might be priced over Prime, LIBOR or 11th District Cost of Funds. Generally permanent loans are for stabilized properties, but soon to be completed properties with some leasing might qualify with certain reserves or holdbacks. Forward commitments are also available, allowing the borrower to lock the rate and fund the loan when certain events occur in the future, such as completion of construction or leasing.

National Bancorp arranges financing for all types of debt. Towards securing the best terms and smartest money for each financing request, we make a market for the borrowers by setting up a bidding process among lenders. Because we work with capital markets day-in and day-out, we are uniquely positioned to advise our clients as to the pros and cons of different types of lending programs, as well as the unique characteristics of each lender. We maintain relationships with virtually all types of debt lenders.

Small Loan Programs

Smaller income properties don’t always cash flow. That’s why at National Bancorp we underwrite the property AND the borrower. So if the property doesn’t cash flow by itself, we can consider the borrower’s overall income and credit score. If their credit score is good, and their overall income is sufficient to service the debt, we are usually able to provide a favorable loan.

Bridge Financing

Bridge loans are for properties in transition. Once lenders are comfortable that the future income of the property will result in a higher valuation, they will often lend up to 90% of cost on a bridge loan. Most bridge loans float over Prime or LIBOR. The higher the leverage, the higher the rate. The lenders making bridge loans are not easily accessed directly by borrowers and usually get their monies from unique sources, such as CDOs, Investment Banks, Credit Lines or Opportunity Funds. Bridge loans may also be used to fund minor or even major renovations of properties with limited or no cash flow.

Equity Financing

National Bancorp accesses over 20 providers of joint venture equity and participating debt nationwide for its clients.