Maranatha Commercial
 
Transaction Types
 

At Maranatha Commercial, our goal is to make your lending experience as simple and pain-free as possible.

We are experienced in most transaction types, including:

  • Purchase - A purchase transaction is intended to solely finance the acquisition of the property. No additional monies other than the purchase price can be borrowed. The loan amount will be based off of the purchase contract price or the appraised value whichever is less.

  • Rate/Term Refinance - The purpose of this transaction is merely to refinance an existing loan for more favorable loan terms. If a borrower has owned the property to be refinanced for 12 months or longer then the loan amount will be based off of the existing appraised value. Maranatha Commercial specializes in facilitating exceptions to this 12-month rule.

  • Cash-Out Refinance - This transaction requires the borrower to already own the property, typically for a period of 12 months or more. Maranatha Commercial specializes in facilitating exceptions to this 12-month rule. The borrower is then able to base their new loan amount off of the appraised value instead of the acquisition price. This will typically result in a better rate and term for the borrower, however, the intended use of the cash proceeds must be disclosed.

  • Construction Loan - This transaction is used specifically for the construction of a project. It assumes that the land needed for the project has already been acquired. The funding of a construction loan is typically done in phases, which will coincide with the stages of construction. Construction loans can be risky to a lender. An experienced developer/contractor or business-owner with strong financial resources is considered favorable on these kinds of transactions. Top

  • Mezzanine Financing - This is a type of loan secured by a mortgage or trust deed in which the loan (lien) is considered junior or secondary to another mortgage or trust deed. Borrowers may request these loans because they already possess a favorable first mortgage on their property and they do not want to refinance or lose the favorable first mortgage terms. Thus a mezzanine loan is supplemental financing which is typically offered at a higher rate and for a shorter term. Mezzanine financing can be very costly due to the risk that the lender is taking on.

  • Acquisition/Development - Otherwise known as A & D, these types of loans are typically used for the purchasing of raw commercial land and the subsequent development of the necessary infrastructure of that land such as the curbs, gutters, electricity, and water that would be necessary for whatever type of permanent commercial buildings are going to be constructed on the land. These types of loans are considered some of the most risky to the commercial-financing industry as they have the highest ratio of default compared to most other transaction types. As a result, an experienced and financially-strong borrower makes the best candidate for these types of loan transactions.

  • Business Acquisition - This is the process of acquiring a company to build on the strengths or weaknesses of the acquiring company. A merger is similar to an acquisition but refers more strictly to combining all of the interests of both companies into a stronger single company. The end result is to grow the business in a quicker and more profitable manner than normal organic growth would allow. Overlapping processes, personnel and products are evaluated and the better performing pieces are retained, while the less desirable are cut. Top

For each type of transaction, we have experience with the following project types:

Call today at (847) 707-7690 to find out how Maranatha Commercial can help fill your Commercial Lending needs.

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