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.
Back to Top