Loan Amount up to $25,000,000
What is a Commercial Real Estate Loan?
Commercial real estate loans are ideal for businesses looking to either purchase, develop or construct new property as well as current commercial property. The way it works is businesses can apply for this type of financing in order to secure a loan (may also be referred to as mortgage for this specific financing) which itself is secured by liens on the commercial property. As the name states, this is for commercial properties only and not for residential properties. Understanding that this loan is for commercial real estate, the terms and rates may differ from a traditional residential mortgage.
How to Use This Kind of Financing
The use for this type of financing can vary, meaning the business does not have to acquire new property in order to apply. This loan can cover expenses such as refinancing or renovations needed on current business real estate in addition to covering new real estate property. Small business owners or even large corporations may be eligible for this type of loan. Keep in mind, this type of financing is very different to a traditional residential mortgage that you would apply for when purchasing or refinancing a residential property. Aside from different terms and rates, the requirements and application process vary as well.
New Construction
Lots or teardowns. Spec houses or model homes, infill, or subdivisions.
Fix N Flip
Loans
for investors buying distressed properties, rehabbing, and selling.
Multifamily
Loans for investors buying multifamily properties that need capital.tal expenditures.
Rental
Loans for real estate investors looking to rent out properties or portfolios.
Term Length 24 to 60 Months
Qualifying Criteria
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650+ personal credit score for LTVs over 50%
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620+ personal credit score for LTVs 50% or less
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12+ months mortgage history
Required Items
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Signed one page funding application
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Lease agreement required for subject property on refinance transactions
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Details on the property to be acquired
Advantages
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Businesses typically not approved for traditional bank loans could qualify
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With large loan amounts and low loan rates, these small business loans can be ideal for growth initiatives.
Disadvantages
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The borrower may be required to make a down payment
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Collateral may be required and low-credit applicants may not be approved.