Just like with a residential mortgage, obtaining a loan for a commercial property requires that you meet certain minimum financial requirements. Some of the most common qualifications for a commercial mortgage include good business or personal credit, an adequate loan-to-value ratio and sufficient borrower income. Credit Commercial lenders will use your credit score to judge how trustworthy you will be as a borrower, how likely you are to repay their loan. The minimum credit score that each [...]
Category: Commercial Mortgages
A commercial mortgage is a loan that is made using real estate as collateral in order to guarantee repayment. There’s a wide range of commercial mortgages available for your business to use. In order to help you pick the best option, we’ve listed several options for you so that you can make an informed decision. We invite you to search our search engine to check out all of the different options available to you. Commercial mortgages can be used for the following: Shopping centers, industrial [...]
Acquisition and development financing, involving a SBA "Certified Development Company" (CDC), provides you with long-term, fixed-rate financing for major fixed assets (land, buildings, etc.). This program contributes to community economic development. The CDC works with commercial lenders to provide another financing option to businesses. This program includes a loan from a commercial lender that covers 50% percent of the project and a second loan for up to 40% of the project cost from [...]
Adjustable commercial mortgage funding is a real estate loan with an interest rate that changes periodically, according to an index that is selected when the mortgage is issued. With an ARM (Adjustable Rate Mortgage), you might qualify for a larger loan and your ARM could be less expensive than a fixed rate loan over a long period. The benefits of an adjustable commercial mortgage are that you have time periods with fixed interest rates along with opportunities to benefit from lower interest rates [...]
Construction mini perm financing for income producing properties. This particular method of financing is used primarily for income producing projects that need to establish an operating history prior to applying for long-term, permanent financing. They are usually applicable to: Shopping centers Office buildings Industrial properties Large apartment complexes Funds from a construction mini perm loan are typically secured during the project construction phase and last through the rental [...]
Construction loan with take-out refers to short-term financing of real estate construction followed by long term financing, called a "take out" loan. This "take out" loan is issued upon completion of improvements. Construction loans normally work together with take-out loans. For example: The land developer gets a construction loan to build a cluster of homes. When all the homes are ready to sell, a buyer gets a take-out loan from a lender to purchase one of the [...]
Fixed rate commercial mortgage makes budgeting and planning easier for your business. Fixed rate commercial mortgage products are mortgages that have a fixed interest rate and payment for the full term of the loan. These loans make it easier to budget, especially over the long term, and offer stability across an ever-fluctuating market. It is vital for businesses to know their exact costs each year, and the mortgage rates can be fluctuating on a yearly basis, so a business could easily end [...]
Hard money loan is a non-traditional financing source for your business. A hard money loan is financed by a private lender, and is used for commercial real estate transactions most of the time. The money loaned is at a higher interest because companies that banks will not approve, can get approved for a hard money loan. The interest on the real estate transaction can be more than double the standard interest rate. This is because the hard money lender is taking on a serious risk. Instead of [...]
Interim loan is a short term financing option for your business. Interim loan financing is an excellent option for your business if you are seeking to purchase commercial real estate, or if you are in the construction phase of building new property. These loans allow you to remain in your current location while the new facility is being built. An interim loan is also great for businesses that want to sell their current property to upgrade, but they can’t afford to miss a good real estate price [...]
Joint venture financing for commercial property Joint venture financing is a means of structuring a mortgage in order to help you, the client, maximize cash flow potential. How? By "teaming" you with a lender as an investor. Definition of a joint venture: similar to a partnership in that it must be created by agreement between the parties to share in the losses and profits of the venture. It is unlike a partnership in that the venture is for one specific project only, rather than [...]