Golf Course Loans


What is a golf course loan?

A commercial golf course loan is a mortgage that finances a golf course. Golf courses are categorized as a type of entertainment/recreational property under the commercial umbrella. Borrowers can put as little as 30% down toward a golf course purchase and finance the rest of the price. It is common for golf course owners to refinance their loan for a better rate and term, or because their term loan coming due. A cash-out mortgage in first or second lien position can fund golf course improvements, rehab and expansion or other enhancements. Golf course construction loans are also available to build a new golf course.

Golf course financing can be used for any of the following purposes:

  • Purchase
  • Refinance
  • Refinance to get cash out of the property
  • Construction or building
  • Rehab and/or remodel
  • Acquisition and development
  • Repositioning the property in the market

What are some common types of golf course loans?

  • Conventional purchase mortgage with down payment
  • No prepayment penalty
  • 25-year amortization
  • SBA 504
  • SBA 7(a) up to 150% LTV
  • Real estate only loan beginning at $1,000,000
  • Hard money
  • USDA B & I
  • Cash-out refinance
  • Bridge loan
  • Funding in 7 days after LOI
  • No cash flow
  • 70% LTV for purchase or refinance
  • No doc, stated income
  • Bank financing up to 85% LTV for purchase, refinance or start-up
  • Rate & term refinance
  • No up-front fees
  • Full documentation bank loan
  • Loans beginning at $80,000
  • Loan size up to $10,000,000
  • No prepayment penalty
  • Construction loan
  • Construction take-out loan

How do I get golf course financing?

A borrower can obtain a mortgage from a traditional commercial mortgage lender, such as a bank or credit union, or from an alternative source, such as a private lender or hard money lender. Full documentation and an appraisal are often required to obtain the lowest interest rate, however, there are financing options available for borrowers that are unable to provide the documentation or have less conventional scenarios. In some circumstances, a borrower may need a fast close and will search for no- or low-documentation loans based on the equity they have in the property. These loan types typically offer LTVs around 55-65% and can close in less than two weeks. Mortgage financing often takes the first position lien, but some golf course lenders also offer second mortgages. This type of golf course funding provides an avenue for borrowers to acquire cash that can be used to improve the property through remodels, expansion, landscaping and more.

Use to find the best lender for your client’s unique situation.

What is a golf course hard money loan?

Hard money or private money loans offer quick closing and lower LTVs, but are typically repaid over just a few years, which can be difficult for some borrowers. The benefit is that they accommodate less conventional loan scenarios and require less documentation than a bank. In some cases, the borrower can use bank statements instead of tax returns, and can qualify with a FICO score as low as 500. In exchange, the lender will offer a higher interest rate but may be able to close in a matter of days or weeks. These loans are often equity based, meaning that LTVs of 50% to 65% are common.

Which lenders offer financing for golf courses?

Many banks, private lenders and non-banks offer loan programs for golf courses. Use to see how many of the 130+/- lenders in our database will consider funding your client’s loan request.

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