Comprehensive Mortgage Solutions
Our Programs
- Business Lines of Credit
- Commercial Real Estate
- Bridge/Hard Money Loans
- Small Business Loans
Loan Process
10 Steps to Closing Commercial Loans
- Broker submits the loan package to Lincoln Road Funding Corp.
- LRF Account Manager reviews the loan application to make sure it meets the underwriting criteria and sends out a Letter of Interest (LOI) or pre-qualification letter within 24 hours.
- Once the broker/borrower agree to move forward and submit any missing conditions required for underwriting approval, the loan is then submitted to U/W for review and conditional approval.
- The U/W will review the completed loan application package and issue a Conditional Loan Approval (CLA), which will be sent out by your Account Manager via email within 48 to 72 hours. (This time frame is from the date a complete package has been submitted to underwriting). CLA will include rates, terms and a list of conditions needed to fully underwrite and close the loan. Please note that actual U/W turn times vary by program.
- Upon borrowers acceptance of the CLA and receipt of the due diligence fees to LRF, your loan will move into processing and we will proceed to order title, environmental reports and the appraisal report.
- Once the appraisal, environmental, and title reports are received and reviewed, the file will move into final underwriting review. Additional conditions may be requested at this time based on this review.
- When all remaining conditions have been satisfied, the loan will be subject to final approval and a final loan term sheet will be issued.
- Final Loan Term sheet and Broker Compensation Agreement to be executed and accepted prior to scheduling the closing.
- The title company will schedule a closing date.
- The loan is funded once the borrower signs all loan documents, and they are returned.
Office
Two types of offices include:
- Entire Office Building
- Single Office Unit
Office buildings should have a minimum of 80% occupancy and to be considered Owner Occupied, at least 51% of the total square footage of the building should be occupied or used by the owner of the building. Speak to your Account Manager about Office Unit or Office Condo financing options available.
Retail
Retail properties are properties that are generally open to the public, such as a business or service that caters to the public. Retail can be one or more tenants and the property is utilized for retail purposes.
A freestanding retail, strip center with an anchor tenant strategically placed in a shopping center to generate the most traffic for all the stores located in the shopping center.
An Unanchored retail center is a center which is occupied by multiple tenants, of which none are anchor tenants.
Single tenant investment retail property that is occupied by one tenant, either as investment property or owner occupied, but generally a single tenant retail is used by the owner.
Industrial
These property types will have usage for industrial purposes. Such as
- Manufacturing
- Light Industrial
- Heavy Industrial
Mobile Home Parks
Mobile Home parks are rated as 1 Star, 2 Star, 3 Star, 4 Star, and 5 Star. The Star ranking is based on the conditions and amenities of the park.
- A 3-Star park usually has a mix of single and double wide homes that are in good condition. The park is attractive and offers some amenities.
- A 4 Star mobile home park usually only has double wide homes that are skirted and in good condition. The homes will have concrete patios or raised porches.
- A 5 Star mobile home park can be characterized as having deluxe accommodations, with a wide range of amenities and services. The homes are usually set back from the curb with paved streets, sidewalks, streetlights and signs. The park is located in a desirable neighborhood and accessible to retail and community services. The homes are late model doublewides and modular homes in excellent condition.
The mobile home park should have at least 85% occupancy and be located in desirable areas. Also, be cautious if the park has too many homes for sale (more than 20% of total pads) or more than 20% of total pads are rented homes owned by the park. Another component is RV's and how many RVs, if any, occupy what percentage of the MHP.
Hotel
Hotels are characterized as either Flag or Non-Flag. A Flag hotel is a branded, or named hotel. A non-flag hotel is usually a no name hotel/motel where the owner lives and operates the hotel/motel. When considering hotel properties, the property should have a stable operational history. A property with a history of four or fewer years should be scrutinized. The minimum acceptable occupancy is usually 60%. Lenders prefer franchise affiliated hotels with franchise agreements extending beyond the term of the proposed loan.