Has anyone ever financed a purchase with a USDA loan? I had a lender mention it could be better than SBA for a deal I'm looking at since I'm above the 5m cap, but I've never heard about this option before.
Thanks,
USDA Loan as Alternative to 7a?
by a searcher from University of South Carolina
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Second, USDA B&I will strictly ask min 1x collateral coverage (unlike SBA 7a). Loan amount is generally 80% of Real Property only (generally 80% or less LTV depending on appraisal value allocation among real property, personal property and intangible)
Third, there is no PLP (Preferred Lender Program). All approval is subject to additional USDA B&I agency approval on each state level. This translates to longer approval and closing period – it can be 120 to 180 days depending on state and deal complexity
Big benefit is if there is commercial real estate involved in the transaction you can hit larger dollar amounts and in some cases loan terms up to 30 years.