Northeast Financial is a Commercial Loan and Mortgage Provider for most commercial property types. One of our niche commercial mortgage products is Hotel and Motel property financing. We offer three great solutions for our clients seeking to buy or refinance such a property.
Option 1 – USDA Commercial Financing: We offer a variety of options with these loans for Hotels and Motels. From 250K to 5 million dollars we are able to go as high as 80% financing and from 5 million dollars to 10 million dollars we are able to go as high as 70% loan to value. We require that there be a real estate component to our loans and are also able to assist with the financing of equipment and furnishings. Geographically we require that our loans fit within the USDA property matrix. If you are not familiar with USDA Commercial Loans (also referred to as B+I USDA Loans) it is a fairly simple process. Many parts of the United States are deemed to be USDA zoned and within a quick application we can tell you if you qualify.
Option 2 – SBA Financing: Loan Sizes for the SBA program are 250K to 10MM and we require a minimum of a 680 credit score. All property types are accepted with the exception of Gas stations or any properties requiring environmental reports. Loan to Values are generally limited to 80%. Hotel SBA loans can be used to purchase property, refinance property, working capital, minor construction/renovation, buying out partners, or for buying equipment. Rates are generally between 5.25% and 7.75% depending on the transaction and loans can close within 45 days.
Option 3 – Stated Small Balance Hotel Loans: This loan is 50K-1.5MM requiring a minimum score of 600 for up to 500K and a 650 for 501K-1.5MM. We offer terms of a 25 year fixed and several adjustable (shorter term) options. Rates are generally between 8%-12.5% on this type of commercial mortgage. The good news is that even though these rates are a bit higher than Prime rates – they are still much lower than Hard Money Rates (and when we do it over 25 years – the monthly payments are very affordable).
We offer many solutions to help you finance your Hotel or Motel throughout the United States. Please Call me today so I can provide you with a free consultation.
Thanks,Chris Adams / Vice President Commercial Lending Northeast Financial
Office (860) 788-7237