Guidelines & Submissions

Market Area

American Family’s market area for mortgage loan investments includes all 50 states.

Property Types

American Family lends only for Office, Retail, Industrial, Self Storage and Apartment properties, not for hotels or special purpose properties such as group homes and hospitals. Medical offices are often considered if on or adjacent to a hospital campus. Other special purpose properties, including restaurants, are not considered.

Loan Size

American Family considers loan requests for $2,000,000 to $10,000,000. Loans of $2,000,000 to $6,000,000 are preferred. Loans of less than $2,000,000 are not of interest unless it is a low leverage industrial opportunity.

Interest Rates

Interest rates offered by American Family are usually established by adding a market-determined spread to the yield on ten-year on-the-run U.S. Treasury securities as of the date the rate is set. American Family can set the rate upon submission of an application, or can set the spread at application then set the rate upon submission of the loan for internal approvals. Under some market conditions floor rates may apply.

Loan Terms

American Family will consider loan terms of 7 to 25 years, but most of our loans are for ten years. Maximum loan amortization is 25 years. For very low loan-to-value 30 year amortization or interest-only payments may be considered. All else equal, fully amortizing loans are viewed more favorably than partially amortizing loans, and faster amortization more favorably than slower amortization. For loan requests involving single tenants, the minimum payments from the lease usually must be capable of fully repaying the loan. For loan requests involving anchor tenants, the maximum amortization period of the loan is generally the remaining term of the anchor tenant’s primary lease term. We prefer loans with lease expiration schedules that do not result in cash flows falling below break-even.


Full or partial recourse is sometimes required, but minimum recourse (for “carve-outs” only) is often acceptable for credit-oriented loans, loans with very low loan-to-value ratios, or exceptionally well located properties with balanced lease rollover schedules and quality management. American Family is always indemnified against liabilities which may arise in connection with environmental contamination, brokerage activities and the Americans with Disabilities Act.

Forward Commitments

American Family may agree to fund a loan up to 12 months after a commitment is accepted, if specified conditions are satisfied prior, depending upon market dynamics, to funding.


American Family currently does not have exclusive brokerage relationships. We accept initial inquiries from anyone by mail, telephone, or email, although we prefer the use of our online submission form. Following initial discussions, we require a complete loan request submission. If after review of this information we decide to pursue a transaction, we provide the broker with a quote. If the prospective borrower decides to accept our basic terms, an application is issued. Upon receipt of the application and any additional information required, we finalize our underwriting and submit a recommendation internally for the necessary approvals. Upon receipt of approvals a loan commitment is returned to the borrower. Following execution of the commitment, we begin preparation of loan documents and completion of closing requirements.

Deposits and Fees

A deposit equal to 1% of the loan amount is required with return of the application, and an additional 1% to 2% is required with the commitment. Borrower shall reimburse American Family for out-of-pocket expenses including, but not limited to legal expenses, travel and property inspection expenses, and other administrative costs.