5-Year Fixed Rate
5-Year Fixed Rate with 30-Year Term and semi-annual rate adjustments for the remaining term.
DSCR Loan Programs
Long-Term Permanent Financing
Long-Term Financing for Stabilized Commercial Properties
Long-Term Permanent Financing
Permanent Loans for Stabilized Income-Producing Properties
NC helps borrowers explore long-term permanent financing options through lending relationships with institutional and private lending partners.
Permanent Loans are designed for stabilized income-producing properties, property acquisition and refinance transactions, and eligible business owner-user properties. Cash-out options may be available depending on the transaction and lending partner guidelines.
Eligible Property Types
Properties Eligible for Permanent Financing
Financing may be considered for a variety of property types, including:
1–4 Unit Rental Properties
Multifamily
Manufactured Home Communities
Office
Retail
Industrial
R&D Flex
Self-Storage
Hotels / Motels
Gas Stations
Automotive Properties
Other commercial property types
Loan Amounts
Permanent Financing Amounts
Loan programs may be available from:
Loan Range
$300,000 to $100M+
Financing requests from approximately $300,000 to over $100MM may be considered through available lending relationships.
Loan Terms
Fixed-Rate & Customizable Loan Structures
Common fixed-rate and customizable loan structures may include:
7-Year Fixed Rate
7-Year Fixed Rate with 30-Year Term and semi-annual rate adjustments for the remaining term.
10-Year Fixed Rate
10-Year Fixed Rate with 30-Year Term and semi-annual rate adjustments for the remaining term.
15-Year Fixed Rate
15-Year Fixed Rate with 15-Year Term.
30-Year Fixed Rate
30-Year Fixed Rate available for 1–4 Unit Residential properties only.
Amortization Options
Available Amortization Structures
Available amortization structures may include:
Amortization
15 years
Amortization
25 years
Amortization
30 years
Amortization
Interest-only options
Interest Rates
How Permanent Loan Rates Are Determined
Rates are determined by factors including:
- Property location
- Building quality
- Debt Service Coverage Ratio (DSCR)
- Loan leverage
In many cases, permanent loan pricing is based on applicable Treasury rates, including 5-year, 7-year, and 10-year Treasury benchmarks, plus the applicable lender spread.
Maximum Loan-to-Value (LTV)
Typical Maximum LTV Ranges
Typical maximum LTV ranges include:
| Property Type | Maximum LTV |
|---|---|
| Multifamily (5+ Units) | 75% to 80% |
| Commercial Properties | 70% to 75% |
| Residential Investment Properties (1–4 Units) | Up to 80% |
Minimum Debt Service Coverage Ratio (DSCR)
Typical DSCR Requirements
Typical DSCR requirements include:
Multifamily & Commercial Properties
1.20x
1–4 Unit Rental Properties
As low as 0.75x
Requirements may vary based on the property, borrower profile, and applicable lending partner guidelines.
Prepayment Terms
Prepayment Structures
Permanent Loans may include prepayment penalties.
Prepayment structures can be customized based on the borrower's anticipated hold period and exit strategy. Available options may include various step-down prepayment structures.
Fees / Points
Typical Fee Ranges
Typical fees may range from:
Typical Fees
up to 2%
Final points may vary based on:
Property location
Loan amount
Property type
Property income
Borrower financial profile
Select properties may qualify for financing structures with no points.
Closing Timeline
Typical Closing Timeframe
Typical closing timeframe:
Closing Timeframe
45–60 days
Final timing depends on factors such as property type, loan size, transaction complexity, and required documentation.
Appraisal Requirements
Property Valuation Requirements
A full appraisal is generally required for most permanent financing transactions.
In certain situations, appraisal requirements may be waived if a qualified and approved appraisal has been completed within the previous 6 months.
Down Payment Requirements
Equity Contribution Ranges
Purchase funds must be verified through bank statements or investment account statements.
Typical down payment ranges include:
- 20% to 30% for multifamily and 1–4 unit residential investment properties
- 25% to 40% for many commercial real estate properties
Required equity contributions are determined by factors including DSCR, interest rate, loan amount, property performance, and lending partner requirements.
Flexible Loan Structures
Recourse, Non-Recourse & Custom Structures
Available options may include:
Recourse and non-recourse structures
Additional income-producing property types reviewed on a case-by-case basis
Underwriting deposits may be required depending on property location and transaction structure.
Loan terms and conditions may change prior to final loan commitment.
Reserve Requirements
Cash Reserve Guidelines
Required Reserves
6 months of mortgage payments
Permanent Loans generally require cash reserves equal to or greater than 6 months of mortgage payments.
Understanding Permanent Financing
How Permanent Financing Works
Long-term Permanent Loans are typically structured with maturity periods ranging from 25 to 30 years.
Permanent financing is commonly used after a property has completed construction, rehabilitation, or lease-up and has reached a level of stabilized income that supports long-term debt obligations.
These loans are generally designed for stabilized properties and may provide longer terms and lower rates compared to short-term financing options. Permanent Loans are commonly used to refinance Bridge Loans, Rehab Loans, and Ground-Up Construction Loans once the property reaches stabilization.
All financing is subject to approval, underwriting requirements, and applicable lending partner guidelines.
Explore Permanent Financing
Whether you are acquiring, refinancing, or transitioning from short-term financing, NC can help you explore long-term permanent financing options through a network of institutional and private lending partners.
Contact NC to discuss your property and learn more about potential permanent financing and DSCR loan options.
Request a Financing Consultation Today
Tell us about your stabilized property and explore available long-term permanent financing solutions for your investment goals.
Contact NC today to discuss your permanent financing needs.
Contact NC Today