Saint Cloud Mortgage

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Loan Criteria for Owner Occupied and Investor Properties

1. Satisfactory loan payment history
2. Variable interest rate tied to the Prime Rate, usually adjusting quarterly
3. Fixed rates of one to ten years indexed to Federal Home Loan Bank of Seattle fixed advance rate
4. Loan-to-value ratio up to 90%
5. Loan maturity and/or amortization not to exceed 20 to 30 years
6. Loan amounts up to $100,000,000
7. First mortgage on owner occupied and investor commercial properties

Credit Approval Criteria

1. First lien position on commercial real estate
2. All loans fully amortizing (no balloons) up to 30 years for multi-use properties, up to 20-30 years for special use properties, 30 years for Car Washes and Gas Stations
3. Mid Fico Scores over 600 for Full-Doc, 680 Stated

Cash Flow/Debt Coverage

1. Minimum DSC of 1.20x on all existing and proposed debt as of last FYE
2. Proper allowance for officer compensation and taxes (required draw = 40% D/I ratio)
3. Excess officer salaries, net building rent, depreciation, amortization, rental income (70%), and interest comprise cash flow in most cases (EBITDA)
4. First lien position UCC-1 and security agreement required on all FF&E on special-use properties

Loan to Value 

• Multi-use = 90% (warehouse, manufacturing, office, retail, medical office)
• Special Use = 90% (new auto dealers, automotive repair shops, grocery stores, funeral homes) 
• Special Use = 85% (restaurants, daycare, car washes, assisted living centers, etc.) 
• Motels = 70% on most older properties (according to St. Cloud's Mortgage valuation method); LTVs up to 75% for newer, flagged, interior corridor properties with fewer than 100 rooms and a minimum 1.4x DSC for the past two years 
• Gas Stations = 75% (according to St. Cloud's Mortgage valuation method) 

90 % LTV with SBA 504 for owner occupied purchase Motels/Hotels and Gas Station/C-Stores 

Call for detailed eligibility, underwriting, and valuation criteria. 

Investor Properties 

The eligibility criteria for investor loans are the same as for owner occupied 
loans for collateral, maximum loan amounts, pricing, and LTVs. Differences 
are as follows: 

1. Minimum 10% equity of the lower of purchase price or appraised value 
2. Gas station/c-stores or car washes permitted 
3. Borrowers must be current or previous owners of investor properties 
4. Minimum 1.2x DSC for past two years 
5. 30 year maximum maturity and amortization 

Call for detailed eligibility, underwriting, and valuation criteria. 

Start-Up Businesses 

1. Prior industry management and ownership experience 
2. 10% equity of hard project costs plus working capital and inventory 
3. Outside sources of cash flow to service > 30-50% of proposed debt 

Non-Eligible Properties 

Churches, Adult Entertainment Facilities, 1-4 family residential properties