Frequently Asked 504 Loan Program Questions

Q: Can my bank work with RMI?
A: Yes. In fact you must have a third-party lender with a 504 loan. RMI can work with any bank or non-bank lender.
Q: What information is required on a 504 loan application?
A: The 504 loan application asks for basically the same information that a bank requires in a loan application.
Q: How long does it take to get my 504 loan application approved?
A: The typical 504 loan approval process takes approximately two weeks.
Q: What is the interest rate and term on a 504 loan?
A: The interest rate is determined at the time of the 504 loan funding. The rate is typically below commercial bank lending rates and is tied to long-term Treasury rates. The term is 10 or 20 years.
Q: Can I use something other than cash for my down payment?
A: The borrower may contribute the equity in land, or the equity may include buildings, structures, or other site improvements that will be a part of the project property.
Q: How much can I borrow with a 504 loan?
A: A number of factors will determine how much financing you can obtain. Your RMI representative can help you find out how much financing is available to you.

NEW! 504 refinancing is available. Click here. PDF

Back to Top