Motel Financing

We have many commercial lenders offering competitive rates on motel for both purchase, and refinance transactions. In most cases, we are able to finance you with a 20% downpayment on the purchase of an motel. Some of our motel lenders allow seller carryback financing to help you facilitate the purchase.
We have many choices for motel loans, starting from $500,000 and going up to $10,000,000. Our lenders have programs featuring all the major indexes including COFI, MTA, and LIBOR, with 3/1, and 5/1 ARMs.

Fixed Rate Term Prepayment Fee Rate

3 Years 3-3-2-1 6.00%

5 Years 4-3-2-1-1 6.25%

7 Years 5-7-3-2-1-1 6.50%

10 Years 5-4-3-2 & 1% yrs 5-8 6.75%

15 Years 5-4-3-2 & 1% yrs 5-13 7.00%

The minimum debt service ratio for motel is 1.25 : 1
The maximum LTV (loan to value) is 60%
The minimum processing fee is $2,500.
Broker fee 1-1.5 points
Rate can be locked for 90 days.
Following the initial fixed interest rate period, the motel loan will become a variable rate mortgage which is tied to the 6 month LIBOR index and the margin will be 2.75%.
The maximum term is 360 months. Interest rates adjust quartely with a .5% period cap and a life cap of 11%, and floor rate equal to the intial rate of the loan.