Anchor Banc offers real estate acquisition loans to purchase or build ground up owner user properties with just 10% cash down. In some cases where the seller is willing, we can allow 5% cash down with the seller holding back a junior note for 5%. Moreover, using the SBA 504 program you can access 25 year fixed rate terms on up to 40% of the financed amount of the project.
The SBA 504 Loan Program is a partnership between a lending institution, a Certified Development Company (“CDC”) acting on behalf of the SBA, and the business owner. Under the SBA 504 Loan program, a lending institution will lend 50% or more of the total project cost, the CDC will provide a minimum of 40% of the total project cost and the business owner will generally provide an equity injection of 10% of the total project.
The SBA’s 7(a) program provides guaranties to Lender needing a credit enhancement in order to approve a non-conventional commercial mortgage to a business owner. Typically, these guaranties are used if the loan to value exceeds 75% of the property value, the property or business acquiring or refinancing the real estate is deemed special use or high risk or the business has some other credit weaknesses that require an additional credit enhancement. The program makes loans through a lending institution, guaranteed by the SBA. The 7(a) program benefits include:
