I recently send out an RFP for a new bank loan on a project we are working on. Here is an overview of what the terms would be, expect something similar if you are looking for a loan. This is for investment property; if you are looking for a loan on a personal residence the terms would be completely different
- 60-70% LTV
- 1.3 DCR(Debt Coverage Ratio)
- 15 Year Amortization
- 6.5% Interest
- 6 months of payments deposited in there bank. I guess this is some sort of a safety net for the bank to have on hand if you do not pay
I am not saying that you could not find a better deal. I am just saying these are the general parameters of a new loan. I send a RFP to about 20 banks. Four banks were interested enough in giving me a term sheet. All four banks I had done a significant amount of business with in the past.
