Graco Mortgage

Hotel Financing Parameters

 

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HOTEL PROGRAM PARAMETERS



Loan Term: Loan maturities are normally ten years. Other maturities will be determined based on your specific case.



Loan Amortization: 25 and 30 year amortization


Debt Service Coverage Ratio (DSCR): DSCR of 1.35:1 dependant upon property type, physical condition, age, location and competitiveness of market position



Loan to Value Ratio: Up to 70% with Limited Service or up to 80% with Full Service of MAI appraised value conforming to FIRREA and USAO guidelines and up to 75% with limited service or up to 85% (full service) of loan to acquisition cost (if applicable).



Loan Escrows: The borrower will typically contribute monhtly to an excrow account for real estate taxes and property insurance. The borrower will usually also establish a monthly capital replacement escrow reserve equal to the greater of i. 4 % of gross revenues or II an amount to be determined by DBMC on the basis of an engineering report and DBMC's site inspection. These reserves may be waived or capped depending on your situation.