All Forum Posts by: James Jeter

Hi Ellie,

Is it a 7(a) loan? Small Business Administration (SBA) loans are subject to SBA maximums. They can be found below. All the information about SBA loans can be found HERE

I would definitely read what your loan documents state. They should tell you what the CAP is for the loan.

Also, the link I posted states the following about variable interest rates

"Variable rate loans may be pegged to the lowest prime rate, the LIBOR Rate, or the SBA optional peg rate. The optional peg rate is a weighted average of rates the federal government pays for loans with maturities similar to the average SBA loan. It is calculated quarterly and published in the Federal Register. The lender and the borrower negotiate the amount of the spread, which will be added to the base rate. An adjustment period is selected which will identify the frequency at which the note rate will change. It must not be more often than monthly and it must be consistent (e.g., monthly, quarterly, semiannually, annually, or any other defined period). The maximum rate for SBA Express and Export Express loans is Prime + 6.5 for loans of $50,000 or less. For loans of over $50,000, it is Prime + 4.5."

Hi Eli,

You can get a conventional ARM with 5% down payment. See Fannie Mae Eligibility Requirements

@Kathy Lowery

Your lender stated that because he is trying to qualify you with a conventional mortgage refinance. Conventional guidelines states you need to show rental income on Schedule E of your tax return before it can be used as qualifying income. You may be able to use the rental income on the subject property for a refinance if the property has no history of rental income by obtaining the comparable rent schedule Form 1007 from the appraiser and copies of a current lease agreement. 

Most lenders will tell you they can't refinance within 6 months because loan officers won't get paid if the mortgage is paid off within 6 months. There is no law against refinancing within 6 months.