What to expect from lenders in today's market:

• Construction lenders across the board are lowering the LTC ratio (loan to cost ratio) to as low as 70% maxing out at 75-80% tops. So long to the 90% loan to cost days at least for now. 
• Lenders willing to entertain residential land development/const. loans are practically non-existent, so if you have a residential deal be prepared to look hard and when you find a lender it will be extremely conservative and will cost you. 
• Unanchored retail is getting more difficult to finance so be prepared to be well over 50% preleased (executed leases) to get a lender to commitment on the construction loan.
• With Wall Street on the sidelines, the only real conventional lenders making loans are banks and a few insurance companies, resulting in these lenders being overwhelmed with loan requests, so be prepared to wait longer to get loans approved and loans funded.
• Community Banks are being hammered by the regulators to reduce real estate exposure which has resulted in the once excellent source for commercial real estate loans being reduced drastically.
• A select few of the regional and big banks are the most active lenders making loans, as well as the new start up banks that don't have any loan problems. However, across the board all lenders are more conservative.
• Good news interest rates are still relatively low for both short and long term. However, expect lenders to put floors on short term rates above the prime rate.  
• Debt service coverage ratios are still in the 1.20 - 1.25:1 range for conventional commercial property types.
  
   

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