FORBIX Commercial Loans | Empowering Your Business Investments

FORBIX | Director Lendor | Investment | Finance

COMMERCIAL

FORBIX is committed to certainty of execution. As a direct lender and investor, we have an in-depth understanding of commercial lending so you can utilize our expertise to secure the best loan and financing options available to meet your specific project criteria.

FORBIX is also part of a select group of commercial lenders licensed by the US Department of Housing and Urban Development (HUD).

Commercial experience includes:

Multi-family

Industrial

Retail

Shopping Centers

Mixed-Use

Hospitality
Healthcare Facilities

Student Housing

Self-Storage Centers

Car Washes

FIXED LOANS

Depending on your particular property scenario, these type of loan products can provide a hedge against inflation and offer long-term stability as well as eliminate a major source of cash flow uncertainty. Generally, these loans are non-recourse and assumable.

FORBIX 35-Year Fixed (Insured by FHA)
- The loan product is fixed and fully amortized for the entire 35-year term, non-recourse and fully assumable. Prepayment penalties are typically a step down for a 10-year period.
FNMA 30-Year Fixed
- The loan product is fixed and fully amortized for the entire 30-year term, non-recourse and assumable. Prepayment penalties are typically for the entire term but can be negotiated by adjusting the yield.
Interest-Only Loans
- For clients that prefer higher cash flow, interest only loans are available under different product types ranging from 5-15 years of interest-only payments.
FNMA/FREDDIE Hybrid Fixed
- These loan products have a fixed-rate term ranging from 5-12 years and are amortized over 30 years. The loans may have an interest-only component for the entire length of the term.

BRIDGE LOANS

FORBIX offers an array of bridge loan products up to 90% LTC. These loans are typically necessary for buildings that don’t qualify for many loan products due to high vacancy or ones in need of substantial rehab. Loans are interest only and tailored to the specific financial scenario.

Structured Bridge Financing

Loan amount: $1 million minimum.
Loan term: 1 to 5 years, extension options available.
Amortization: Determined on a case-by-case basis. Typically, interest-only payments.
Minimum DSCR: 1.2 (120%) at exit with appropriate ratio in place.
Maximum LTV: 75% of exit value.
LTC: 80% (up to 90% with mezzanine loan).
Interest rate: Floating rate over LIBOR index. Spread varies based on risk and terms.
Eligible properties: Traditional acquisitions, rehab properties, entitled land, construction completion and renovations.
Sponsorship: Strong track record of similar projects, subject to net worth and liquidity requirements.
Security: First or second mortgage lien on subject property.
Tax & insurance escrows: Evaluated case by case.
Replacement reserves: Evaluated case by case.
Recourse: Generally non-recourse with standard carve-outs.
Prepayment: Generally permitted.

CONSTRUCTION LOANS

We offer a variety of financing options for the construction portion of your project: SBA-designed for owner-occupied commercial construction, standard short-term loans varying from 18–36 months and a fixed-rate FHA product that integrates the cost of construction into the 40-year fixed term on multi-family properties.

FORBIX 40-Year Fixed Construction to Permanent (Insured by FHA)
- This loan is fixed during the course of construction and 40 years thereafter. It’s non-recourse and fully assumable for qualified applicants.
Standard
- The loan is variable for 18–36 months with mini-perm loan options. It’s typically tied to the LIBOR index or the WSJ prime rate.
SBA (504)
- SBA 504 Construction Loans are designed for owner-occupied commercial real estate construction. Occupancy requirements: 51% of the building for renovation loans and 60% for ground-up construction.

MEZZANINE LOANS

These types of loans enable you to align yourself with FORBIX as an experienced capital partner. They provide access to the full capital stack and can be combined with other loan products to achieve a higher loan-to-cost ratio.

While the rate of mezzanine financing is generally higher compared to other loans, there is built-in flexibility should liquidity problems occur.

Loan amount: $1.5 million – $30 million.
Loan term: Generally 1–5 years with extension options available.
Amortization: Interest-only or fixed principles pay downs.
Minimum DSCR: 1.10 through debt service, case-by-case for JV equity.
Maximum LTV: Up to 90%.
LTC: 80% (up to 90% with Mezzanine).
Interest rate: Preferred rate of return and profit participation.
Eligible properties: Multi-family, student, and seniors housing as well as other asset classes located in strong markets.
Eligible borrower: Single-asset entity.
Sponsorship: Strong sponsors with proven track record and “skin in the game.”
Security: Pledge of ownership interests secured by UCC or preferred equity position.
Required reports: Includes proposed exit financing, appraisal, phase 1, PCNA.
Repayment: Generally permitted.
Lender fee: Origination and negotiated exit fee.

HEALTHCARE SPECIFIC

FHA 232

FORBIX provides non-recourse FHA-insured, long-term, fixed-rate financing for refinance, acquisition or moderate renovation of assisted living and nursing facilities nationwide.

Loan term & amortization: Maximum term of 35 years or 75% of the remaining economic life, fully amortized.
Maximum loan: Loan amount of the refinance purchase of existing properties is the lesser of:
- 80% (85% non-profit) or market value.
- Mortgage amount supported by DSC of 1.45.
- 100% of the transaction cost for a refinance (85% of the transaction cost for a purchase transaction. Recognizable transaction costs include repairs, initial replacement reserves, third-party reports and closing costs along with eligible existing indebtedness or purchase price.
Fixed rate: Yes.
Eligible properties: Facility must be completed or substantially rehabilitated for at least three years prior to the date of the application. Projects with additions completed less than three years previous are eligible as long as the additional was not larger than the original project size and number of beds.
Eligible borrower: Single asset entity.
Cash out: Not allowed.
Tax & Insurance escrows: Monthly deposits required.
Commercial space: Maximum 10% of gross floor areas and maximum 15% of effective gross income.
Required reports: Appraisal, PCNA and Phase I Environmental.
Prepayment: Negotiable. Generally 2-year lockout with a 10% to 1% declining pre-payment penalty. Other pre-payment options available.
Assumable: Subject to servicer and HUD approval and payment of assumption fee.
Good Faith Deposit: Negotiable based on project type.
Expense escrow: Sufficient amount to cover expenses and third-party costs.
Origination fee: Negotiable.
HUD application fee: Non-refundable fee of $3 per $1K (0.3%) of the mortgage amount due to HUD with the firm commitment submission package.
HUD inspection fee: $20 per unit when repairs are less than $3,000 per unit. 1% of repair costs otherwise.
Legal/closing fee: Borrower pays legal counsel fee and miscellaneous closing costs.
Rehabilitation qualifications: Repairs cannot exceed 15% of appraised value or replacement of two or more major building systems.
Davis-Bacon: Not applicable.
HUD mortgage insurance premium: 1% MIP upfront at closing. Annual MIP: 0.77% for market rate properties and 0.45% for affordable properties.

COMMERCIAL

BRANDON, MS OFFICE 300 Castlewoods Blvd., Ste. 4 Brandon, MS 39047 (601) 965-9677 Info@FORBIX.com

BRANDON, MS OFFICE
300 Castlewoods Blvd., Ste. 4
Brandon, MS 39047
(601) 965-9677
Info@FORBIX.com