CMBS Loans are non-recourse loans for performing investment properties . The loan is pooled with other loans and sold as a security in the form of a bond. What is attractive about CMBS mortgages is that do not inhibit the borrowers future lending options due to the non-recourse feature of a CMBS loan.
|Commercial Mortgage Backed Security|
|Loan Type||Acquisition, refinance & refinance with cash out.|
|Loan Amount (USD)||3 Million - 80 Million|
|Recourse||Non-Recourse / Carve outs.|
The amortization time for a CMBS loan is generally 25 to 30 years, with a balloon payment due at the conclusion of the term. The interest rate is fixed (and may or may not include an interest-only period). CMBS Loans are a fantastic opportunity for these lenders to offer a second loan product to borrowers while protecting their liquidity position because the loans are not kept on the conduit lender's balance sheet. Because of the more lenient underwriting guidelines, CMBS Loans allow CRE investors who ordinarily cannot meet strict traditional liquidity and net worth standards to participate in commercial real estate.
|Financing Term||Fixed Rate||Loan to Value||Maximum Amortization|
|5 Year||5.97% - 7.99%||75%||30 Years|
|7 Year||5.94% - 7.96%||75%||30 Years|
|10 Year||5.86% - 7.88%||75%||30 Years|