The Small Business Administration’s flagship loan, the 7(a) loan, can be used to purchase land or buildings, construct new property, or renovate existing property, provided the real estate will be owner-occupied. Through this program, you can borrow up to $5 million through an SBA-affiliated lender. The maximum allowed interest rates for the program are based on the WSJ Prime Rate plus a margin of a few percentage points. Interest rates can be fixed, variable or a combination of the two. Repayment terms for 7(a) loans used for real estate can go up to 25 years. These loans are fully amortized, meaning each monthly payment will be the same until the loan is paid off.
Contact us with any questions, or to run any hard money type loan scenario by us. You can go to our website, click on “Request a Loan Now” and fill out the online, interactive loan application. PMF Partners are a Hard Money lender.