Loan Types
Fixed Rate Loans
Although Fixed Rate loans are a staple of the mortgage industry, many opportunities exist for negotiation on mortgage lending terms, especially interest rates, loan-maturity and prepayment penalties. Because of our deep relationships with lenders, Florida Bond and Mortgage (FBM) can provide the best fixed interest rates and additional terms in the industry. Borrowers can feel secure knowing that the rate will not change throughout the entire term of the loan. FBM's experienced professionals know when to recommend fixed rate loans through proprietary loan evaluation models.
Floating Rate Loans
A floating rate loan is typically indexed to the London Interbank Offered Rate (LIBOR), which tracks and approximates the Federal Funds rate. Many recent borrowers have chosen floating rate loans to take advantage of the historically low interest rates of the past few years. Floating rate loans often feature minimal or no prepayment penalties. They are particularly attractive to buyers with a two to four year financing horizon, such as acquisition of a property going though a reposition or a turnaround. FBM can help borrowers exploit these flexible structures for their immediate short-term utility or as an astute means of strengthening their long-term strategy.
Construction Loans
Typically, Construction Loans are short-term loans utilized by borrowers to finance building costs. Every construction loan varies depending on the product, the length of the construction process, and the borrower's experience. Meridian can help builders find the best source, rate and term for these often critical loans.
Mezzanine Loans
Whether it be structured as partnership debt, or preferred equity, a mezzanine loan can be an integral component for a real estate owner or developer in many diverse circumstances. The mezzanine typically equals the difference between the first mortgage lending amount and 85-90% of the purchase price. FBM has vast experience in evaluating options for our borrowers in this increasingly utilized loan product for a variety of real estate transactions.
Bridge Loans
All types of short-term financing can be accessed for complex or challenging situations in terms of both timing and product. Designed to be paid back relatively quickly, such as by a subsequent longer-term loan, bridge loans can be a key component in a long-term strategy for real estate borrowers. FBM has a wide range of sources for Bridge Loans and can help borrowers understand all the nuances and conditions as well as plan for the future.
Forward Commitment
Forward commitments continue to gain in popularity in the current borrowing climate for real estate. This involves a commitment by a lender to make a loan in the future, often with a predetermined interest rate. FBM has developed many resources for forward commitments and has experience in obtaining the optimal structure for the borrower.
Renovation/Repositioning
Similar to a construction loan, a renovation loan may involve financing for the specific purpose of upgrading an existing property in order to project the desired image of a product or service to the market. FBM's lending professionals are able to help borrowers present their renovation program to the right lending source and to plan and consummate transactions in a timely fashion, with the best rates and terms available.