The product is good for properties with five or more units, mixed-use or any other business-purpose loan
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Citadel Servicing Corp. (CSC) is kicking its business-purpose loan program into high gear with a summer special.
“While a lot of other folks are talking about getting into the commercial space, we’re pushing ahead,” said Will Fisher, senior vice president and national sales and marketing director for CSC.
The special is good for properties with five or more units, mixed-use, or any other business-purpose loan. Brokers will receive free compensation of 1% on a purchase loan and 0.5% on a refinance, Fisher said. Eligible loans must close by Sept. 30.
“We can do it on our non-TRID program as well, so we can close the loan ultra-fast,” Fisher said.
Fisher said that the program opens up more opportunities for those seeking a business-purpose loan or looking to get into the multifamily space.
“There’s a lot of movement in the multifamily space, and we feel that 1-4 units is too limiting,” Fisher said. “…We see a fantastic opportunity in the space and think it has been underserved. We look forward to being able to provide the financing for borrowers in need of this type of loan.”
Fisher said CSC’s program gives commercial borrowers an edge.
“We’re offering a 5/1 or 7/1 arm with a 30-year amortization and rates that start at 6.75% with no lender points,” he said. “It’s just more competitive compared to what’s out there for commercial right now. Most folks out there are offering a balloon or a shorter term. We feel like this is pretty innovative – and there’s more to come. Through August and September, you’re going to see this product segment grow.”
And the product is open to a wider range of borrowers than many, Fisher said.
“They don’t have to be self-employed. If they’re a wage-earner, but they also own a multi-unit, that fits the bill,” he said. “What the borrower does for a living doesn’t really matter with this product. You’ve still got all the benefits of the quick close and being able to state or attest to your income.”
Product details include:
- $300,000 minimum loan amount
- $5 million/30-unit maximum
- 680 minimum credit score
- 5/1 ARM
- 2/1 prepayment penalty
- Mixed-use and business-purpose loans
Rates:
- 55% or lower LTV: 6.75%
- 60% or lower LTV: 6.99%
- 65% or lower LTV: 7.25%
