Fountainhead Conventional Loans

What do we do?

In general, our conventional loans are designed for project amounts up to $20 million or so. Our loans can include the acquisition of commercial real estate, refinance of existing debt, renovation of the commercial real estate, and/or cash-out for other investment purposes. Our loans typically involve a first lien on the commercial property of not greater than 65% of the total appraised property value. Finally, a down payment or equity contribution, typically 35%, comes from you the Borrower. These loans are for commercial real estate properties that are either owner-occupied or investment/income properties. Fountainhead offers very competitive interest rates with a 25-year amortization and exceptional customer service, allowing for 24-hour pre-approvals, two-day approvals and quick closings – often within 30 to 45 days.

Eligible Borrowers:

  • For-profit, non-publicly traded businesses
  • Debt service coverage ratio of 1.1x or greater
  • Ownership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents (some exceptions apply)
  • Investment properties can be eligible for this program

Examples of Property Types We Finance with our Fountainhead Conventional Loan Program:

  • Medical offices or medical facilities (such as labs and clinics)
  • Office buildings (including office condos)
  • Warehouses (and other industrial properties)
  • Day care facilities (for children or adults)
  • Free-standing restaurants
  • Limited-service, flagged hotels (some unflagged destination hotels will be considered)
  • Assisted-living facilities
  • Call to ask about many other property types that are eligible

Ineligible Borrowers:

  • Non-profits (except sheltered workshops)
  • Lending institutions (mortgage brokers and correspondent lenders are eligible)
  • Businesses located in a foreign country
  • Businesses selling products or services through a pyramid plan
  • Gambling concerns
  • Businesses which restrict patronage
  • Government owned entities (excluding Native American tribes)
  • Consumer and marketing cooperatives (producer cooperatives are eligible)
  • Businesses engaged in loan packaging
  • Businesses that have previously defaulted on a Federal loan
  • Businesses engaged in political or lobbying activities