Full Doc Bank Loan

Full Doc Bank Loan Tear Sheet

Loan Amount	$200k minimum. No firm maximum.
Loan Term and Amortization	5–20 year term with 20–25 year amortization.
Coverage Area	Greater Philadelphia
Interest Rates, Points and Fees	Lowest available
Borrower Income and Asset Verification	Complete asset verification, 24 months business and personal bank statements, and last two years business and personal tax returns.
Entity (LLC or Inc) vs. Individual Name Vesting	Both allowed
Credit Scoring for Multi Member LLC	Lender will pull credit for every Member owning 10–20% or more.
Purchase LTV	65–80% of purchase price
Refinance LTV	65–75% of appraised value
Property Level Cash Flow	1.20–1.30 DSCR at 20–25 year amortization
Seasoning Requirement for Cash Out Refi	6–24 months with property level income seasoning
Monthly Payment	Principal + Interest payment, with property taxes and insurance paid separately.
Eligible Property Types	Most property types eligible
Timeline to Close	45–90 days

Commercial Bank Term Loan Calculator

Commercial Bank Term Loan Calculator

Bank loans for multifamily and commercial property are full doc loans, meaning they require 2 years personal and business income history, and the bank will verify assets (e.g. cash, stock, retirement plans, and other real estate owned). Unlike DSCR loans, banks typically do not escrow for property taxes and property insurance, so the monthly payment is just Principal and Interest (PI), as opposed to a DSCR loan payment which is Principal, Interest, Taxes, and Insurance (PITI). Typical amortization terms for bank loans are 20 years (240 months) and 25 years (300 months).

Principal ($):

Interest Rate (Annual %):

Amortization Term (# of Months):

Output: Monthly Payment, PI ($):

Up Front Costs

Lender Underwriting Fee ($):

Lender and Broker Points (% of loan amount):

Appraisal Fee ($):

Title, Recording, Insurance, and 3rd Party Costs ($):

Output: Total Up Front Loan Closing Costs ($):

Full Doc Bank Loan Process

Step 1- Initial Discussion, Loan Application, and Term Sheet

Discuss the purchase or refi scenario and property level details
Suggest relevant loan programs and provide parameters
Loan application and initial info request (we can get this over the phone too)
Term Sheet and Appraisal Fee

Step 2- Initial Info Required for Full Doc Bank Loan

Any remaining info points to complete the Loan Application
Photo of ID and void check
Contact information for your title agent and insurance agent
If borrower is an LLC, then LLC Operating Agreement and EIN Letter
Bank statements with cash to close and required reserves for Purchases

Step 3- Appraisal, Title, Insurance, and Additional Info from Borrower

Appraiser visits the property and completes the appraisal report
Lender reviews the appraisal report, internally re-checks value and reviews for property condition
Title agent provides title policy, works with lender on revisions and clarifications
Insurance agent provides insurance policy, works with lender on revisions and clarifications
Lender usually comes up with other things to ask for from borrower

Step 4- Final Underwriting, Closing, and Funding

Lender sends complete file to underwriting, and they may find issues or require more things at that point
Final coordination between title company and lender on loan docs and scheduling
Closing and Funding

Full Doc Bank Term Loans Commentary

A full doc bank loan would adjust rental income downward for operating expenses and vacancy (not just taxes and insurance) and require 1.20 or 1.25 dscr at 20 or 25 year amortization. Full doc loans have more stringent debt service coverage guidelines than a DSCR loan for Commercial Property

Why work with a third party originator like Nonbank Clearing on a full doc bank loan?

We deal with banks that are better than average on service, timeline to close, structure, and pricing. We identify potential issues early in the loan process to avoid the dreaded denial notice after 1-2 months of work for a reason that could have been spotted earlier. We are not quick to switch lenders over something small, but we can pivot to another lender if we sense we are coming to a true impasse with a given bank. We can also help with the mountain of paperwork involved in a full doc loan application and loan process.

Nonbank Clearing Advantages

Competitive rates and structures (multiple lender outlets)
Familiar with bank underwriting and guidelines
Excellent service and simplified loan processing