Posted By: COMPL101TX
Construction/Mini-Perm Commercial loan - 11/05/21 04:46 PM
We have what lenders call a construction/mini-perm loan to construct apartments. The loan has a 5 year maturity with 3 year interest only (construction phase) then converts to 2 years P&I after construction is completed. Per the approval memo, a permanent FNMA loan will be obtained sometime after construction is completed and stabilized.
1. Would you consider this a construction only loan or a construction-to-perm?
Also, this loan is for the second phase of the apartments and is under a different borrower name than the first phase. The FNMA permanent loan will combine both phases into one so the borrower name may not be the same as our loan.
2. Since the permanent phase has to be to the "same borrower," would this make the temporary financing exemption not applicable?
1. Would you consider this a construction only loan or a construction-to-perm?
Also, this loan is for the second phase of the apartments and is under a different borrower name than the first phase. The FNMA permanent loan will combine both phases into one so the borrower name may not be the same as our loan.
2. Since the permanent phase has to be to the "same borrower," would this make the temporary financing exemption not applicable?