In commercial real estate finance, an origination fee is an amount of money charged by a lender for processing a loan. Loan origination fees can vary, and are often between 0.5% and 1%.
Do Commercial Loans Require Commercial Mortgage Insurance?
Most single-family home mortgages require the borrower to pay private mortgage insurance (PMI), or, for HUD and USDA loans, a mortgage insurance premium (MIP). This insurance protects the lender in case the borrower falls behind on their payments or defaults on their loan. However, the vast majority of multifamily and commercial real estate loans do not require mortgage insurance, with the exception of HUD multifamily loans.
What is a Good Cap Rate for a Hotel?
In general, there is no one good cap rate for a hotel investment. A good cap for a hotel varies based on asset quality, asset location, and industry metrics, such as RevPar (revenue per available room) and ADR (average daily rate). Hotels generally offer the highest cap rates of any asset class, with cap rates typically varying from 7.5% to 10.5% depending on asset type and market conditions.
What is the Minimum Debt Yield for a Commercial Loan?
What are the Underwriting Guidelines for FHA Multifamily Loans?
The underwriting guidelines for FHA multifamily loans are perhaps the strictest on the market today, excluding perhaps underwriting guidelines from life company lenders. HUD and lenders require a wide scope of reports, including appraisals, market studies, environmental reports, and much, much more.