When you are looking at obtaining a commercial real estate loan from www.sbaclc.com, you will need to know what the loan to value (LTV) ratio is for the property. Each type of commercial loan has specific requirements and conditions for the maximum amount of LTV available to borrow against the property. For example, a five year fixed loan through a Government Sponsored Program for five or more multifamily units, mobile home parks or mixed use has available LTVs ranging from 55 percent to 80 percent, depending upon the debt service coverage ratio (DSCR). The DSCR is the amount of debt a business is allowed to carry from available cash flows in order to qualify for the loan. For instance, with a minimum DSCR of 1.25, the maximum LTV available is 80 percent. This means that if you are purchasing a property valued at $1 million, you may be able to qualify for a commercial loan up to $800,000.
Non-recourse First Mortgage Loans Are Available from http://www.sbaclc.com
In addition to all types of recourse loans available through www.sbaclc.com, they also feature access to non-recourse commercial first mortgages. a non-recourse loan is a secured loan that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable.