Commercial Residential Long Term Loans
We offer loan programs for Investment Residential, and Commercial Properties.
As direct portfolio lenders, Velocity Mortgage Capital provides loans when other lenders can't. Using Velocity's 'No Income Verification' program, you'll offer your customers competitive rates and terms while generating new revenue streams today, and into the future.
Key Loan Features
Rates as low as 6.74%
Funding from $75K to $5MM
LTVs up to 75%
No pay stubs or tax statements required
650+ mid FICO qualifies
No balloons- 30 year amortized term with a 3 or 8 year fixed period
Investor 1-4, Multi-family, Mixed-use Office, Retail, Warehouse, Automotive Service and more
Commercial Funding Highlights
Territory: Worldwide
Amount: $1,000,000.00 - $500,000,000.00 USD & UP (NO CAP)
Underwriting Fee
On transactions under $5,000,000.00 USD,
THE CLIENT MUST TYPICALLY HAVE LIQUID (2.5%), CASH AGAINST TOTAL PROJECT COST TO PAY IN (STAGES FOR THE CAPITAL RAISED OVER THE PERIOD OF TIME IT TAKES FOR THAT CAPITAL RAISED).
ON transactions over $5,000,000.00 USD,
THE COST OF THE CAPITAL RAISED CAN BE AS LOW AS (CASE BY CASE: 0.10%) AGAINST THE TOTAL FUNDED AMOUNT.
Terms
Up to 30-year Amortization once project is "Cash Flowing"
Interest Only During Construction.
Points
• 12% is built into the Funding (which includes Brokerage Points).
Collateral
• All company assets either existing or created by the funding
Interest Rate
• For projects, approximately 4.5% to 8.5% per annual interest only (may vary by marketing conditions).
Third Party Reports
Client is responsible for all "Client Expense" all!
Underwriting fees
Reports
Appraisals
Third party complication reports needed to close the project, prior to closing.
STEPS TO FOLLOW IN SUBMITTING A PROJECT
Proof of Funds
Color copy of driver’s license.
Attached loan worksheet
A. Table of Contents to include
i. General – brief description of project and your goal
ii. Definitions – defining terms – for example: Authorized Individual: Person appointed by the Organization who can legally sign documents binding the organization.
iii. Proposal Criteria such as but not limited to:
a. Program Criteria
b.
Contract Term
Contract Requirements
Proposal Process
i. Proposal Requirement
A. Proposal Evaluation and Selection
B. Attachments
C. Project Summary
D. Floor Plans, blue prints, etc.
E. Outline of income that will be generated i.e. rental income
F. Spreadsheet with construction costs/breakdown
G. Project phases and soft costs
H. Spreadsheet of Total Soft Costs/Services
I. Executive Summary
J. Exit Strategy
Note: Once all the above documents are submitted and accepted you will get
I. 144A Bond Loan Program Approval Letter (upon request) along with
II. Funding Addendum giving instructions for wire transfer to Wells Fargo Bank. This Addendum needs to be signed and notarized. Wells Fargo Bank as well as most banks will notarize free of charge. This Funding Addendum will be emailed.
III. The Last step is to get requested project money deposited in to designated account to begin your project. (The process takes 90 to 120 days from start to finish)
Please note the following:
1. Closing cost is a tax write-off.
2. Broker fees are also a write-off; tell your clients keep all statements and receipts we provide to them.
3. 2.5% bond funding is also a tax write-off
4. Wire of funds for Bond goes directly to Wells Fargo Bank to a Trust Account managed by an attorney specifically for the purposes of the management of the Bond. This is not a Wells Fargo product. The Funding Addendum will provide all the necessary information for you and your client.
5. You can use your own title company
6. as well as you own commercial appraiser as long as they are MIA approved. This will be reimbursed or paid directly to your provider from the .05% of bond monies. Specifically set aside to pay any property related expenses.