Overview
The Idaho Mortgage Program is intended to provide local funding to Idaho commercial properties. D.B. Fitzpatrick & Co., Inc. has administered the Commercial Mortgage Program since 1988 with the objective of generating portfolio investment returns superior to the intermediate bond market at lower levels of risk.
Preferred Property Types
Institutional grade properties throughout Idaho including: office space, major retail, industrial or warehouse properties, apartments, motels and hotels, small retail and miscellaneous properties. Demand for property type is subject to current portfolio allocation.
Loan Criteria Highlights
- Loan Amount: Minimum of $1,000,000, up to 7% of the total of the Idaho Mortgage Program can be loaned to any one borrower, guarantor, or related entity.
- Preferred Property Types: Office, retail, industrial, apartments, motels and hotels, and miscellaneous properties in Idaho only.
- Term: Standard terms include: 1-year adjustable, 5-year fixed, and 10-year fixed.
- Amortization: Amortization of commercial loans will be set commensurate with the type of property being considered for financing. The maximum amortization term acceptable will be 30 years.
- Rate Criteria: Based on U.S. Treasury rates for the appropriate term of the loan. Current rates can be found here.
- Maximum LTV: 75%
- Minimum DCR: 1.20
- Recourse: Personal loan guarantees for all loans must be provided.
- Origination Fees: 0.25% of the loan amount to PERSI. A broker is required for all transactions and fees are negotiated between the borrower and the broker. Forward commitment and rate lock also available. (Contact manager for details)
- Prepayment: No prepayment may be made during the first loan year. After the first full year, two or more principal installments, not to exceed 20% of the original loan amount, may be paid in any one loan year without penalty upon 30 day prior written notification. This privilege shall be non-cumulative. In the second loan year the loan shall commence with a penalty of 3% on payments in excess of those described above and shall thereafter decline at the rate of 1/2% per year until the penalty reaches a point of 1%, and the prepayment penalty shall continue at such 1% throughout the remainder of the loan. There shall be no prepayment penalty the last six months of the loan.
- Insurance: Hazard Insurance (to include fire and earthquake), Public Liability (equal to $1,000,000 per occurrence with PERSI named as additional insured), Flood Hazard (if within a zone designated as a flood hazard area), Loss of Rents (covering at least 12 months).
Drew Black—Commercial Mortgage Portfolio Manager