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TO SPEAK WITH A COMMERCIAL LOAN SPECIALIST
CALL 888-431-0698 or Request Rapid Pre-Approval or Email Us
Minimum commercial mortgage loan amount is $350,000, and there is no upper limit on the loans we consider.
In case of most of our commercial mortgage loan programs we can accommodate loans with loan to value ratio (LTV) as high as 90% or even 95%. However this ratio is capped by the fact that within the same amortization schedule, higher the loan amount means higher monthly obligation to service debt, and the borrower must have the capacity to service the debt.
In terms of capacity to service the commercial debt, we classify commercial real estate properties into two categories; one where the debt service on a commercial mortgage loan will be from the income of the commercial property. Obvious examples are apartment buildings, office buildings, etc. The other category is where the debt service is from the income of the business occupying the property such as a gas station, restaurant, auto body shop, beauty salon, car wash, even hotels and motels. In some cases, the business is owned by the owner of the commercial property and is the primary occupant of the property. However, even in some of these categories of commercial properties, we take into consideration the estimated market rent, as if the business was a tenant of the commercial property owner. Then there are cases where both the property owner and additional tenants use the building.
You should note that owner occupancy is a parameter considered in risk assessment of a commercial mortgage loan. Many commercial mortgage loan programs are geared towards owner occupancy and others towards investment properties, and there are programs that will cover both with different pricing driven by min. debt service coverage ratio (DSCR), max. loan to value (LTV), market driven capitalization rate, actual or market values for min. Replacement Reserves, Tenant Improvement and Leasing Commissions. Structuring the loan with the appropriate investor and program is essential in ensuring that you will get the most competitive commercial rates for your commercial loan.
For this reason, it is very important to have an in-depth discussion with our clients to ensure their leases and agreements are structured so to position them for most favorable commercial mortgage loan quotes. We may even recommend rearranging the relationship between the property owner, the property and the business to achieve that goal.
Looking for the competitive commercial rate however is not the only way to obtain the optimum solution for your goal. In our working with business owners, entrepreneurs, and real estate investors, it is obvious that the experienced commercial mortgage loan borrower is equally or even more concerned with their monthly cash flow, and of course that is directly related to the amortization terms of your commercial mortgage loan.
The most competitive commercial rates are typically available for those commercial loans that can be packaged into commercial mortgage backed securities (CMBS). Investors who purchase these securities are looking for high yields, which from an underwriting standpoint are reflected in high debt service coverage ratio. Savvy business owners and commercial real estate investors recognize that achieving high DSCR occasionally requires improvement to the property or additional construction. In many such cases, short term, interest only commercial bridge loans or commercial construction loans provide the borrower with necessary capital to improve the property and position it for refinancing into long term conduit loans, with significantly lower rates.
We recommend that as soon as you are ready to explore a commercial loan to contact us, so we can help you plan and structure your loan documents accordingly. While in most cases we can provide you with a pre-approval within 24 hours, and in the case of stated income stated asset commercial mortgage loan, we can close within 48-72 hours of obtaining the commercial appraisal, we recommend that you give yourself 1-2 months during which if necessary you can address issues with credit report, if any, as well as other home work that will only serves you in this process. Since, each commercial loan application is truly unique, we will provide you with a checklist of preparatory steps you should take.
Please note that in the case of revenue generating properties, although the stated income stated asset guidelines will not require your individual tax return, the underwriting process must satisfy property's potential to service the debt. In most cases, this requires accurate and certified rent rolls, and a commercial appraisal. In cases where additional supporting information can strengthen the deal, prior year schedule E may be required.
Required loan documentation specific to your commercial property are available in the document library. You should download and review these brief documents as they are an excellent way help you plan and identify missing information you need to start collecting.
Please note that SBA loans are business loans that require additional documentation including a business plan, as well as personal financial information. We do not consider startup loans unless the borrower and its senior management team has extensive prior experience in the industry you are applying for. We will however direct you to other lending partners who can help with start up businesses.
TO SPEAK WITH A COMMERCIAL LOAN SPECIALIST
CALL 888-431-0698 or Request Rapid Pre-Approval or Email Us
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