Our commercial loan programs provide options to finance or refinance commercial property. Programs are available for domestic and international investors. Our programs support the following investment projects: ​

• Fix and Flip

• Cash Out – Refinance

• Fixed Commercial Loans

• Commercial Bridge Loans

• Bridge Loans

• Stated Income/No-Income Verification Loans

• New Construction

• Blanket Loans

• Fixed Rental Programs

• Multi-Family Loans

• Retail, Warehouse, Office, Storage

 

SBA Loans

 

SBA loans bring competitive rates and tangible benefits to small business owners. Low equity requirements allow you to keep cash flow for operational expenses, long-term financing helps you maintain low monthly financing payments, and flexible loan terms allow you to continue to invest in your business.

Our dedicated loan specialists help you obtain the SBA loan that best fits your short and long-term needs.  As an SBA-approved lender, NexBank has the ability to underwrite and close loans on behalf of the SBA.  We streamline the process and provide shorter turnaround times and timely decisions so you can access your funds quickly—and focus on your business.

We help businesses secure loans for a variety of purposes, including:

• Property acquisition
• Construction and development
• Equipment and machinery purchases
• Refinancing existing debt

SBA loan features include:

• Loan Size: Up to $5,000,000
• Terms: Up to 25 years
• Balloon Payments: None
• Loan to Value: Up to 90%

Residents of many US states can take advantage of our approval with GSFA to get a Mortgage Credit Certificate (MCC). Applicants that qualify can claim 30% of their mortgage interest, up to $2,000 per year, as a credit on their federal income tax withholdings and still claim the remaining 70% interest as a deduction. The benefit may be realized immediately by filing a revised W-4 with your employer to increase your take home pay. It is like taking an advance on your mortgage interest deduction. Call one of our loan officers for more information and to see if you qualify.

Section 203(k) insurance enables homebuyers and homeowners to finance both the purchase (or refinancing) of a house and the cost of its rehabilitation through a single mortgage or to finance the rehabilitation of their existing home.

Purpose:

Section 203(k) fills a unique and important need for homebuyers. When buying a house that needs repair or modernization, homebuyers usually have to follow a complicated and costly process. The interim acquisition and improvement loans often have relatively high interest rates, short repayment terms, and a balloon payment. However, Section 203(k) offers a solution that helps both borrowers and lenders, insuring a single, long-term, fixed, or adjustable-rate loan that covers both the acquisition and rehabilitation of a property. Section 203(k) insured loans save borrowers time and money. They also protect the lender by allowing them to have the loan insured even before the condition and value of the property may offer adequate security.

For less extensive repairs/improvements, see Limited 203(k). For housing rehabilitation activities that do not also require buying or refinancing the property, borrowers may also consider HUD’s Title I Property Improvement Loan program.

Type of Assistance:

Section 203(k) insures mortgages covering the purchase or refinancing and rehabilitation of a home that is at least a year old. A portion of the loan proceeds is used to pay the seller, or, if a refinance, to pay off the existing mortgage, and the remaining funds are placed in an escrow account and released as rehabilitation is completed. The cost of the rehabilitation must be at least $5,000, but the total value of the property must still fall within the FHA mortgage limit for the area. The value of the property is determined by either (1) the value of the property before rehabilitation plus the cost of rehabilitation, or (2) 110 percent of the appraised value of the property after rehabilitation, whichever is less.

Many of the rules and restrictions that make FHA’s basic single family mortgage insurance product (Section 203(b)) relatively convenient for lower income borrowers apply here. But lenders may charge some additional fees, such as a supplemental origination fee, fees to cover the preparation of architectural documents and review of the rehabilitation plan, and a higher appraisal fee.

Eligible Activities:

The extent of the rehabilitation covered by Section 203(k) insurance may range from relatively minor (though exceeding $5000 in cost) to virtual reconstruction: a home that has been demolished or will be razed as part of rehabilitation is eligible, for example, provided that the existing foundation system remains in place. Section 203(k) insured loans can finance the rehabilitation of the residential portion of a property that also has non-residential uses; they can also cover the conversion of a property of any size to a one- to four- unit structure. The types of improvements that borrowers may make using Section 203(k) financing include:

• structural alterations and reconstruction
• modernization and improvements to the home’s function
• elimination of health and safety hazards
• changes that improve appearance and eliminate obsolescence
• reconditioning or replacing plumbing; installing a well and/or septic system
• adding or replacing roofing, gutters, and downspouts
• adding or replacing floors and/or floor treatments
• major landscape work and site improvements
• enhancing accessibility for a disabled person
• making energy conservation improvements

HUD requires that properties financed under this program meet certain basic energy efficiency and structural standards.

NEWS – loan limits removed – as of January 2020, the VA loan limit is no longer tied to the standard area conforming limits. While standard mortgage rates are on the rise, VA Mortgage Rates are holding at record low levels. Exclusively designed programs for active and veteran service personnel.

 

EXISTING VA LOANS

 

Refinance with a VA IRRRL! Lower your rate and monthly payment with a loan term of your choice. Also, there will be:

• No Income Verification
• No Appraisal Needed
• No Closing Costs*

* or you can choose to show costs for an even better interest rate.

 

NEW VA LOANS

 

VA home loans are mortgage loans guaranteed by the Veterans Administration provided to veterans, active service members, and eligible surviving spouses. Aside from the veteran’s certificate of eligibility and the VA-assigned appraisal, the application process is similar to other types of mortgage loans. Advantages of VA loans:

• No down payment is required
• No PMI (private mortgage insurance)
• VA interest rate is frequently lower than ordinarily available rates
• Qualification standards are more relaxed
• VA loans can be refinanced up to 90% of the home value
• VA funding fees may be rolled into the loan amount
• Disabled veterans, their surviving spouses, and winners of the Purple Heart are exempt from paying the funding fees

Are you a first-time homebuyer?

I’m sure you’ve got questions about your mortgage options. There are many programs out there, and whittling them down to the exact one that’s right for you and your future isn’t always an easy task. Here’s an overview of the basics, before we dig into the specifics.

First, mortgages can be grouped into five main categories.

1. FHA mortgages
2. Conventional mortgages
3. USDA mortgages
4. VA mortgages
5. Mortgages, wallets, and “other” mortgages

Each loan category has its benefits, and a well-trained mortgage loan agent can assist you to make the right choice. However, you can reduce your mortgage options to suit your specific needs.

How should you choose a mortgage?

Some years back, it was tough to acquire a mortgage. The lenders were stingy, and the guidelines were strict. Only a few loans were approved, the housing market suffered as a result. Today, the mortgage market looks a little different.

Housing values ​​(finally) have exceeded the maximum prices of the last decade, and mortgage lenders are more willing to lend than in any period of this decade. According to Ellie Mae, more than 70% of the loans are currently being approved, with mortgage software processing more than 3.5 million loan applications each year. This is the highest percentage of approval since this information was taken.

But for today’s buyers, it’s not just “Will my mortgage be approved?” There are more mortgage options available than during any part of this decade, too. The proliferation of low and medium-term mortgage loans has helped boost homeownership among long-term tenants, and the return of loan 80/10/10 allows existing owners to “travel” to something more significant.

How to Choose a Mortgage

When choosing a mortgage, consider the following:

1. Down payment Amount
2. Loan Size
3. Credit Score

Long or Short Term Hold – Planning on holding the loan long term? There are a few things to consider. Considering refinancing again soon? There are others.

Why would you refinance soon after refinancing now? Rates have been declining since the Federal Reserve’s rate dropped to just .25%. Many feel 30-year conventional rates may dip as low as 1.5%! The question is when. The answer is, if it happens, soon. The Fed’s rate will remain at .25%, per them, until at least 2022 and likely longer. In the next few months to a year, perhaps a little longer, we could see rates that low.

Closing Costs – Three Ways to Pay In cash, add them to the loan amount, zero cost loan (costs added to the interest rate).

Holding the Loan to Term – If you are planning to keep the new loan to term, your best bet is to pay the costs cash and write them off your taxes (check with your CPA to be sure). If you add the costs to the loan amount or to the interest rate you pay interest on that block of money throughout the term you have that loan. Actual difference in cost over time if you add it to the loan amount vs. adding it to the rate is about 20% (you will pay 20% more interest on the closing costs if you embed them into the rate).

Refinance Soon if Rates Drop – If you are planning to refinance soon, within the next 6 months to 2 years, you are better off with a zero cost loan, embedding the costs into the interest rate. If you pay it up front or add it to the loan, once you retire that loan you pay the entire amount, plus any interest you already paid. If you embed it into the rate, you only pay for the time the loan has been active. The gamble is, if you don’t refinance you will pay the additional 20% over time. So the consideration is to risk paying additional interest over 30 years on those closing costs in the event you do refinance soon saving the bulk of those costs.

Conclusions

If you plan to hold onto your new loan to term, your best bet is to pay the costs in cash, 2^nd to adding it to the loan amount. Adding it to the rate will only cost you more long term.

If you are betting on rates dropping enough that you would want to refinance again soon, best bet is to do a zero-cost loan and embed the costs into the interest rate. This way, if you do retire the loan early, you save the bulk of those costs. If you end up keeping it to term, the additional 20% interest on just those closing costs is likely worth the risk.

 

Buying Down a Rate – no matter what rate you qualify for, you can usually get a lower one by paying extra for it. It is called “buying down” the rate. Entertaining this scenario also depends on how long you plan to keep a loan.

If you are planning to refinance quickly, it makes no sense to buy down the rate. When you refinance you will lose the extra money you paid to get the lower rate.

If you plan to keep the loan, not necessarily to term but for a good period of time, it may be worth doing. You need to calculate your break-even point. You divide the monthly savings by the money you paid for the lower rate and find out how many months until you break even. For instance, if paying $4000 extra lowers your rate from 2.5% to 2.25%, and that .25% less saves you $1000 per year, it would take you 4 years to break even. You would save money throughout the loan from that point on. If you retired the loan, in this case, prior to 4 years you would lose a percentage of it.

Consult a Professional – our focus is to help you determine the best way to approach your refinance. Please reach out and let us do the math.

 

The VA Loan began in 1944 through the original Servicemen’s Readjustment Act, also known as the GI Bill of Rights. The GI Bill was signed into law by President Franklin D. Roosevelt and provided veterans with a federally guaranteed home with no down payment. This feature was designed to provide housing and assistance for veterans and their families, and the dream of homeownership became a reality for millions of veterans. VA guaranteed loans are made by private lenders, such as banks, savings & loans, or mortgage companies to eligible veterans for the purchase of a home, which must be for their own personal occupancy. The guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.

 

Who is eligible for a VA Loan?

Wartime/Conflict Veterans

Wartime/Conflict Veterans who were not dishonorably discharged, and served at least 90 days:

• World War II – September 16, 1940, to July 25, 1947
• Korean Conflict – June 27, 1950, to January 31, 1955
• Vietnam Era – August 5, 1964, to May 7, 1975
• Persian Gulf War – Check with VA regional office for specific eligibility.
• Afghanistan and Iraq – Check the VA’s Web site for eligibility guidelines for current service in Afghanistan and Iraq.

Reserves and National Guard

Members who have completed six years of service and have been honorably discharged (or are still serving) may be eligible for a VA loan. Contact your regional VA office for more details.

Peacetime Service

Peacetime service of at least 181 days of continuous active duty with no dishonorable discharge. If you were discharged earlier due to a service-connected disability, you should speak with the regional VA office to verify eligibility.

• July 26, 1947, to June 26, 1950
• February 1, 1955, to August 4, 1964, or
• May 8, 1975, to September 7, 1980 (enlisted) or to October 16, 1981 (officer)
• Enlisted veterans whose service began after September 7, 1980, or officers whose service began after October 16, 1981, must normally have served at least two years.

Other types of service that may make you eligible for a VA loan:

• Certain US citizens who served in the armed forces of a government allied with the United States during World War II.
• Surviving spouses of eligible persons who died as the result of service or service-connected injuries. The surviving spouse must not have remarried.
• The spouse of any member of the Armed Forces serving on active duty who has been listed as a prisoner of war or missing in action for more than 90 days.

What type of home can I buy with a VA loan?

 

A VA home loan must be used to finance your personal residence within the United States or its territories, but you have many choices regarding the type of home you purchase.

• Existing single-family home.
• Townhouse or condo in a VA-approved project.
• New construction residence.
• A manufactured home and/or lot.
• Home refinances. Certain types of home improvements.

How do I apply for a VA guaranteed loan?

 

You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan. You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility For Home Loan Benefits, to one of the VA Eligibility Centers, along with proof of military service. In some cases, it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it’s best to provide such evidence.

I have already obtained one VA loan. Can I get another one?

 

Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time-only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send VA a completed VA Form 26-1880 to one of the VA Eligibility Centers. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.

 

What are the negatives of a VA Loan?

 

• VA loans made prior to March 1, 1988, can be assumed with no qualifying of the new buyer. If a buyer of such property defaults, the veteran homeowner may be liable for funds.
• Some sellers may be hesitant to work with someone who is acquiring a VA loan because of their past reputation of taking longer to process than conventional loans. While the time may still be a little longer, getting a VA loan is not the lengthy ordeal it once was.
• Sellers are often asked to pay a portion of closing costs, so they may not be eager to negotiate the sales price of the home.

What are the benefits of a VA Loan?

 

• 100% financing, no down payment loans are common.
• No Private Mortgage Insurance (PMI).
• No penalties if you prepay the loan.
• Competitive interest rates.
• Loan qualification is sometimes easier than if you were applying for a conventional loan.
• Sellers can pay all closing costs

 

U. S. Department of Housing and Urban Development website provides extensive information about buying a home including affordability, borrower’s rights, tips and tricks for shopping for a loan, and details about different home buying programs including FHA loan programs and other special programs.

Freddie Mac is a publicly held corporation chartered by Congress to increase the supply of funds that mortgage lenders, such as commercial banks, mortgage bankers, savings institutions and credit unions, can make available to homebuyers and multifamily investors. This Freddie Mac site offers a step-by-step tutorial on the home buying decision process and the mortgage application process.