Conventional Loans

Types of Financing

  • Purchase
  • Refinance
  • Construction
  • Expansion
  • Start-Up

Loan Amounts: $250,000-$10,000,000

Terms: 5, 7, 10 Year Terms

Interest Rate: Fixed / Floating

Rates:  Currently between 3.50% – 6.0%. Rates based on, Prime, U.S. Treasuries, LIBOR or internal bank rates

Amortization: 15,20, 25, 30 years

Loan To Value: 50 – 90%

Prepay Penalties: 1st Year 5%, 2nd Year 3%, 3rd Year 1%

Fees:

  • Origination usually 1.0 – 1.5 Points
  • Due Diligence Deposit
  • Customary closing costs
  • Construction fee, if applicable, to offset monitoring costs

Eligibility:

  • Owner occupied / investment properties
  • US Citizen or permanent resident alien status
  • Good credit/character
  • Depository relationship may be required by many banks

Collateral: First lien on land, building, equipment and inventory. Additional outside collateral may be required if values on an appraisal come up short.

Conventional financing for self-storage facilities has proven to be very popular with business owners due to general lower origination costs and generally slightly lower interest rates than SBA or other government guaranteed financing.  Local banks can frequently respond quicker because of geographical desirability. Conventional financing however in some situations is more difficult to qualify for due to shorter amortization periods and higher debt service coverage looked for by lenders. Lenders may also be looking for a depository relationship which may or may not be desirable to a borrower.

When using credit union financing, there usually will not be a depository relationship required and no pre-payment penalty.  Rates will be competitive with bank rates.

To pre-qualify for financing, download the following forms and provide the following information:

  1. Loan Application  (pdf)  (Word) or Apply Online
  2. Personal Financial Statement  (pdf)  (Word)
  3. Resume  (pdf)  (Word)
  4. 2013 Year End Business Financials
  5. 2014 Year-To-Date Business Financials

This is a general guideline for documents normally needed depending on the type of financing being applied for.