subject: What is Direct Commercial Funding? [print this page] What is Direct Commercial Funding? What is Direct Commercial Funding?
Direct Commercial Funding is one of the worlds largest commercial funding lenders. While they are based in Texas, they underwrite and fund loan projects all over the world. They fund many types of projects inlcuding multi-use properties for offices, retail spaces and warehouses, multifamily for apartment units and special use. They do not, however, typically fund properties such as churches and gas stations. Direct Commercial Funding funds real estate loans starting at $250,000 and offer up to 10 year fixed term options. These loans are fully-amortizing.
As with most institutions, Direct Commercial Funding does require that applicants submit to a credit report. Typically, a credit score of 680 or better is required. There are additional forms that need to be submitted when submitting deals to DCF, including a loan application, business and personal tax returns from the previous 3 years, property tax returns, business and personal financial statements, property information, including photos, appraisals and a property description. If the property is a housing unit, submitting a rent roll will be requested.
Appraisals of properties may be accepted if they were completed within the last six months, but this is subject to the current market and the quality of the report. An additional appraisal may be required. DCF will obtain an appraiser as they do not accept third party appraisals.
A current tri-merge credit report will be required and must be included in the application and can be supplied by the applicant, however an additional report will be pulled by Direct Commercial Funding before final underwriting.
Once these details have been submitted a pre-approval letter including all of the transaction details will be provided. This pre-approval letter includes all estimated costs. If you are a small business, you will need to find a Certified Development Company (also known as a SBA 504) to expedite the application process.
When closing commercial loans Direct Commercial Funding has a short turn around time compared to other companies. Conventional loans can close as early as 30 days if all documentation is provided within 10 days of pre-approval. Construction loans and small business loans require a minimum of 45 days. Loans which require an appraisal will require a minimum of 3 to 4 weeks just for the appraisal process.
Direct Commercial Funding Inc. underwrites and funds loan projects all over the globe. There motto is, "If we like it, we fund it!"
