Loan Programs

Conventional Commercial Real Estate & Multifamily Lending Programs

Government Guaranteed Lending Programs

For Small Balance Loans, La Quinta Capital has developed correspondent relationships with a large number of national, regional and local banks. Financing solutions are available for a broad range of commercial real estate asset categories at market rates and terms. Contact us for additional information or click here to submit a loan.

Loan Size: $500,000 to $10,000,000
Borrower Types: Investor and Owner-User
Transaction Types: Purchase, Refinance and Construction (1)
Position: 1st Lien
LTVs: 60% to 75% (2)
DSCR: 1.25 to 1.00 or greater (2)
Amortizations: 15, 20, 25 and 30 Years (2)
Loan Types: Variable, Fixed and Hybrid (2)
Fixed Rate Terms: 3, 5, 7 and 10 Year (2)
Property Types & Rates: Call 760-342-0044

(1) Current market conditions generally limit construction lending to very strong sponsors with projects in major metro markets.

(2) Loan Terms will vary depending upon lender and other factors which may include: borrower credit, property type, property condition, location and other relevant factors.

For Middle Market Loans, La Quinta Capital has developed correspondent relationships with a large number of commercial banks, insurance companies, money managers and REITs. Financing solutions are available for a wide range of asset categories at market rates and terms. Contact us for additional information or click here to submit a loan.

Loan Size: $10,000,000 to $50,000,000 and up.
Borrower Types: Investor and Owner-User
Transaction Types: Purchase, Refinance and Construction (1)
Position: 1st Lien
LTVs: 55% to 75% (2)
DSCR: 1.30 to 1.00 (2)
Amortization: 15, 20, 25 and 30 Years (2)
Loan Types: Variable, Fixed and Hybrid (2)
Fixed Rate Terms: 3, 5, 7 and 10 Year (2)
Rates: Call 760-342-0044

(1) Current market conditions generally limit construction lending to very strong sponsors with projects in major metro markets.

(2) Loan Terms will vary depending upon lender and other factors which may include: borrower credit, property type, property condition, location and other relevant factors.

Small Balance

Small Balance Bridge Loans are interim real estate loans that give property owners time to complete some tasks, such as making property improvements, leasing to new tenants, obtaining permanent financing or selling the property. Small Balance bridge loans are typically offered along hard money guidelines.

Loan Size: $500,000 to $5,000,000
Transaction Types: Purchase, Refinance and Construction
Borrower Types: Investor and Owner-User
Position: 1st Lien
Rates: 9.95% to 13.0% (1)
Maturities: 6 months to 60 months (1)
Maximum LTV: Generally 65% (1)
DSCR Test: May Apply (1)
Minimum Credit Requirements: May Apply (1)
Fees: Hard money bridge lenders generally charge origination fees of between 2 to 5 points; broker fees may also be applied. Call for additional details.

(1) Loan Terms will vary depending upon lender and other factors which may include: borrower credit, property type, property condition, location and other relevant factors.

Middle Market

Middle Market Bridge Loans are typically offered on an institutional lending basis. Rates and terms vary greatly, ranging from 150 to 200 basis points higher than conventional long term financing to rates of over 15% on loans funded by hedge funds. Potential funding sources include commercial banks, insurance companies and hedge funds.

Loan Size: $5,000,000 and Up
Transaction Types: Purchase, Refinance and Construction
Borrower Types: Investor and Owner-User
Position: 1st Lien
Rates: 7.00% to 17.0% (1)
Maturities: 6 months to 60 months. (1)
Maximum LTV: 65% to 70% (and up to 83.3% for certain HUD financing candidates) (1)
DSCR Test: 1.25 to 1.00 (1)
Fees: Institutional bridge lenders generally charge origination fees of between 1 to 2 points; broker fees may also be applied. Call for additional details.

(1) Loan Terms will vary depending upon lender and other factors which may include: borrower credit, property type, property condition, location and other relevant factors.

Mezzanine Loans are subordinate debt that provides borrowers with greater leverage compared to traditional bank financing alone. Available Combined Leverage to Value (“CLTV”) may reach 75% to even 85% in some instances. Mezzanine financing has become a common methodology to secure supplementary financing for real estate acquisitions, property improvements and development projects. Mezzanine Loans are only available on middle market properties at this time.

Loan Size: $2,000,000 to $15,000,000 and Up
Transaction Types: Purchase, Refinance and Construction
Borrower Types: Investor and Owner-User
Position: 2nd Lien
Rates: 12.00% to 20.00% (1)
Maturities: 6 months to 60 months. (1)
Maximum CLTV: Generally 75% - and up to 85% by exception (1)
DSCR Test: 1.30 to 1.00 (1)
Fees: Institutional Mezzanine Lenders generally charge origination fees of between 1 to 2 points; broker fees may also be applied. Call for additional details.

(1) Loan Terms will vary depending upon lender and other factors which may include: borrower credit, property type, property condition, location and other relevant factors.

Joint Venture Equity provides borrowers/sponsors with the additional balance sheet strength necessary to obtain senior debt financing for a project. Joint venture investment partners generally receive a senior preferred dividend return in addition to a pro rata participation in the project’s value upon completion or sale. JV Equity Partnerships frequently include a set termination date for investor payoff. Interest payments and total investment returns earned by investors for current dividend payments typically range from 8.0% to 12.0% with the total internal rate of return targeting 20% to 30%.

Investment Size: $2,000,000 to $15,000,000 and Up
Transaction Types: Purchase, Refinance and Construction
Structure: Senior Preferred (1)
Equity Ownership: Subject to Negotiation
Dividend/Interest Rates: 8:0% to 12.00% (1)
Total IRR Return: 25% to 30%+ (1)
Term: 36 months to 60 months. (1)
Other Terms: Claw Back Bonuses and Fail to Perform Penalties Subject to Negotiation (1)
Fees: Institutional Mezzanine Lenders generally charge origination fees of between 1 to 2 points; broker fees may also be applied. Call for additional details.

(1) Partnership Terms will vary depending upon investor fund and other factors which may include: sponsor credit and equity participation, property type, property condition, location and other relevant factors.

Small Business Administration loan programs lend to small businesses through private-sector lenders. The SBA in turn guarantees these loans which leads to lower rates and higher loan to value ratios than would otherwise be generally available in the market place. La Quinta Capital presently offers 504 and 7(a) loans through its national PLP and CDC lending partners.

SBA 504

Loan Size: $500,000 Up to $10mm – (Subject to SBA Size Standards and Lender Restrictions).
Borrower Type: Owner-User Only
Max LTV: Up to 90% (bank first and CDC second combined)
Position: 1st Lien
Collateral: Generally, the project assets being financed are used as collateral. Personal guaranties of the principal owners are also required.
Available Loan Types: 5 Year Fixed Rate and 10 Year Fixed Rate Available (Senior First Lien) With 20 Year Fixed Rate CDC Second
Rates: Call 760-342-0044
Use of Proceeds: Limited to fixed asset projects, such as:

• The purchase of land, including existing buildings
• The purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
• The construction of new facilities or modernizing, renovating or converting existing facilities
• The purchase of long-term machinery and equipment

The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing.

To be eligible for a CDC/504 loan, your business must be operated for profit and fall within the size standards set by the SBA. Under the 504 Program, a business qualifies as small if it does not have a tangible net worth in excess of $7.5 million and does not have an average net income in excess of $2.5 million after taxes for the preceding two years. Loans cannot be made to businesses engaged in speculation or investment in rental real estate.

Small Business Administration loan programs lend to small businesses through private-sector lenders. The SBA in turn guarantees these loans which leads to lower rates and higher loan to value ratios than would otherwise be generally available in the market place. La Quinta Capital presently offers 504 and 7(a) loans through its national PLP and CDC lending partners.

SBA 7(a)

Loan Size: $350,000 to $5,000,000
Borrower Type: Owner-User Only
Max LTV: 90%
Position: 1st Lien
Collateral: Generally, the project assets being financed are used as collateral. Personal guaranties of the principal owners are also required.
Loan Types: Variable Rate and Fixed Rate
Loan Rates: Call 760-342-0044
Use of Proceeds: Loan proceeds may be used to establish a new business or to assist in the acquisition, operation, or expansion of an existing business.

Eligible Use of 7(a) Loan Proceeds Include (Non-Exclusive):

• The purchase land or buildings, to cover new construction as well as expansion or conversion of existing facilities
• The purchase of equipment, machinery, furniture, fixtures, supplies, or materials
• Long-term working capital, including the payment of accounts payable and/or the purchase of inventory
• Short-term working capital needs, including seasonal financing, contract performance, construction financing and export production
• Financing against existing inventory and receivable under special conditions
• The refinancing of existing business indebtedness that is not already structured with reasonable terms and conditions
• To purchase an existing business

SBA loans cannot be used for these purposes:

• To refinance existing debt where the lender is in a position to sustain a loss and SBA would take over that loss through refinancing
• To effect a partial change of business ownership or a change that will not benefit the business
• To permit the reimbursement of funds owed to any owner, including any equity injection or injection of capital for the business's continuance until the loan supported by SBA is disbursed
• To repay delinquent state or federal withholding taxes or other funds that should be held in trust or escrow
• For a non-sound business purpose

Loan Size: $700,000 to $8,000,000
Max LTV: 80% to 90%
Position: 1st Lien
Collateral: Generally, the project assets being financed are used as collateral. Personal guaranties of the principal owners are also required.
Borrower Type: Investor or Owner-User
Loan Types: Variable Rate and Fixed Rate
Loan Rates: Call 760-342-0044

The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits. It is not intended that the guarantee authority will be used for marginal or substandard loans or for relief of lenders having such loans.

A borrower may be a cooperative organization, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other federally recognized tribal group; a public body; or an individual. A borrower must be engaged in or proposing to engage in a business that will:

1. Provide employment;
2. Improve the economic or environmental climate;
3. Promote the conservation, development, and use of water for aquaculture; or
4. Reduce reliance on nonrenewable energy resources by encouraging the development and construction of solar energy systems and other renewable energy systems.

Individual borrowers must be citizens of the United States (U.S.) or reside in the U.S. after being legally admitted for permanent residence. Corporations or other nonpublic body organization-type borrowers must be at least 51 percent owned by persons who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence. B&I loans are normally available in rural areas, which include all areas other than cities or towns of more than 50,000 people and the contiguous and adjacent urbanized area of such cities or towns.

Multifamily Programs: HUD 223-f & HUD 221-d4

Senior Living: HUD 232, Hospital: HUD 242

Refinance Existing HUD Loans 223-(a)7

U.S. Department of Housing and Urban Development has provided mortgage insurance since 1937 to FHA HUD Lenders. FHA HUD is a major source of financing for affordable housing with recent figures showing insured commitments from 1996 through 1999 at nearly $4 billion each fiscal year in multi-family and healthcare facility projects, processing submitted multi-family loan insurance applications through 51 Multi-family Hubs and Program Centers throughout the nation.

The proven experience of La Quinta Capital has qualified us as a designated contractual correspondent with represented FHA HUD MAP/LEAN lender projects consisting of Multi-family housing and healthcare facilities. Our represented client/projects receive consultation assistance, including needed skill sets to conduct project analysis, pre-underwritten and pre-approvals, including third party report bid placement with result reviews and adjustments necessary to qualify your project to current FHA HUD guidelines.

All programs offer Non-Recourse capital to a newly formed, or existing LLC, and corporation. Approvals are weighted heavily toward the Net Operating Income of the property and less on the income of the borrowers. Programs are easily assumable with minimum debt service coverage of 1.20.

Loan Amounts: Suggested minimums of $2.5 million and up. There are no maximum limitation caps.

Multifamily Programs

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• Current rate 3.875%
• 35 year fixed terms with 35 year amortization
• Loan to value ratio 83.33% (cash out to 80% same rates/terms)
• Renovation/Rehab for qualified properties. Not to exceed $6.500 per unit average.

• Current rate 4.25%
• 40 year fixed rate amortized over 40 years
• Loan to value 83.33% or Loan to cost whichever is lower (exception if total project rent assisted Section 8 then up to 87%)
• Builder/developer profit: If the builder is or will be a partner in the project the allowable profit is currently 10% of all costs excluding the land however, the profit can be counted as “”Equity” in the project. (Contact us for specific guidelines of BSPRA and SPRA for Sponsor’s Profit and Risk Allowance.)
• Davis Bacon rules will apply
• Renovation/Rehab capital for existing qualified properties when funding exceeds $6,500 per unit average

Senior Living Programs

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• Rates currently 3.875%
• Provides financing in a similar manner to those programs outlined above. Acquisition and refinance offer 35 year fixed rates terms while new construction and substantial rehabilitation offers 35 to 40 year fixed rates terms
• Loan to value currently 85% existing. For assisted new construction 75% of value or cost, whichever is lower.

• Rates similar to those posted above
• 25 year fixed rate amortized over 25 years
• Loan-to-value currently 90%
• Rehab centers do not qualify

Refinance

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Program purpose: Provides Mortgage insurance to refinance currently insured properties by FHA HUD in an expedited manner. Usually 5 to 8 weeks as the streamlined nature of this program does not require a new appraisal or Phase I Report, however, it does require a new PCNA Report (property condition report).

• Benefits: lowers interest rate, reduces debt service, and can generate proceeds for needed repairs with minimal processing and underwriting.
• Eligible Borrowers: Projects with existing FHA insured loans.
• Caution: this program cannot be used for cash out refinance requests (see 223-f)

La Quinta Capital can provide alternative Non FHA HUD capital placement arrangements, including short term interim capital for qualified projects. Contact us for details.