borrowers purchasing or refinancing an automotive provider assets (repair, fuel station, oil trade, and so forth) will face constrained options in comparison to just 3-6 months ago. because the residential subprime mess keeps to seep into all markets, modern and innovative options have either long gone into “hibernation” or have been tighten to the factor that handiest the strongest qualify.In terms of what remains without difficulty to be had for automotive debtors – think SBA 504, SBA 7a (there are fixed charge options available and you can use this to refinance), and 30 year constant.SBA 504Created handiest for purchases, borrower can nonetheless count on eighty five% financing on both directly purchases and or production/rehab loans. the primary advantage to this application encompass the high leverage and that the fee can be fixed for as long as five, 7, 10 and some lenders provide 25 year fixed prices. additionally quotes are usually very competitive. for instance, currently (April 2008) borrowers can count on a blended rate within the high 6’s.no matter what many borrowers agree with the SBA system has been significantly advanced and borrowers can realistically count on their loan to shut in forty five – 60 days, on par with all business mortgages.SBA 7aWhile the 504 application is geared commonly for loans in the $2,000,000 – $7,000,000 range, the SBA 7a application is geared for smaller loans with a little extra “hair”. borrowers can use projections instead of simply traditionally financials to qualify. Debt coverage ratios can be as low as 1.1 and 90% financing is available on each purchases and refinances for maximum car houses.The most not unusual objections to the 7a applications are 1. the program normally comes with a floating fee and a pair of. The SBA guarantee charge of two.seventy five% of the mortgage quantity is too luxurious. however it is crucial that the borrower realise that the phrases of the loan are negotiable. There are 2 countrywide banks that we paintings with for instance, that shape this mortgage as a 5 year constant and the banks pay for the assure price in order to win over deals for most borrowers.30 yr FixedThis innovative mortgage was extensively to be had for automotive debtors/homes simply five months ago, but has grow to be constrained. Refinances are actually capped at 70% mortgage to fee and coins out refinances are capped at 65% Borrower credit rankings want to be at the least 680 and financials want to mirror a 1.25 minimum. similarly properties older than 10 years may have a difficult time getting closed.regardless of the demanding situations, the 30 12 months fixed option is a strong program and worthwhile for the borrower to analyze in the event that they just like the concept of getting long term fixed rate financing.