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We do commercial loans for mixed-use property such as Apartment Buildings, Motels and Hotels, Shopping Centers, Gas Stations, Vacant Land and Individual Warehouses. Commercial Loan plans tend to be similar to residential mortgages. The main options are either fixed rate or variable rate repayment mortgages or Interest only mortgages. Unlike residential mortgages, however, the interest rates for commercial mortgages tend to be higher as business lending is perceived as more of a risk. The rates will vary depending on the circumstances of your business, but generally speaking, the higher the risk, the higher the Interest Rate.
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- Commerical Loan amounts from $100,000 to $15,000,000
- Commerical Loan terms up to 30 years
- Free pre-approvals and fast closings
- Simple application and qualifying process
- Low costs and fees
- Up to 90% loan-to-value
Commercial Mortgage: An Overview
A commerical loan is similar to a residential mortgage, except the Collateral is a commercial building or other business real Estate, not residential property.
Commercial premises are purchased for many reasons. One may require bigger premises to cope with expansion, or you may be buying property, whereby the property is directly linked to a business e.g a hotel. Commerical Loans are usually for over 15 years, and may be much longer than this.
Commerical Loans are often used for a variety of purposes:
- To purchase the premises of the business.
- For the extension of existing premises
- Residential and commercial investment
- Developing the property in other manners.
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The nation is experiencing severe recession, and with retail market suffering, tenants on commercial properties are having a difficult time paying their rents.
They are defaulting on their leases at an alarming rate. Because of this, more and more commercial property owners are having trouble meeting their obligations.
These factors are causing commercial property values to decline substantially, and we do not see a recovery until late 2011. The commercial lenders cannot handle the volume and size of defaults, and are willing to renegotiate the terms of the loan.
We will try to understand exactly what your financial situation is, how much your property has declined in value, by what amount, and how much you can afford to pay each month. We look at possibilities of Principal reduction.
We audit and crunch the numbers before they get to your Lender. Where other companies are using inexperienced representatives, we have highly experienced agents, attorneys and appraisers. We have a well connected network to help us achieve the best possible result for your particular situation.
Qualification requirements for a Loan Modification
There are specific factors that determine if you are eligible for a loan Modification. The primary factors are the type of property, percentage of positive or negative Equity, income, and what type of hardship you are experiencing. Every case is unique.
We will walk you through with all the forms that are needed for completing your loan modification such as Financial Statements, Business Plan and Projection, and hardship letter.
Can I do it myself?
You can try to negotiate on your own, but because you do not know exactly what the lender is looking for and what formula they use, you are much more likely to get your application denied. Even if accepted, you will most likely not receive the lowest rate and the best terms. With a professional negotiator on your side, you have the best chance of receiving the most favorable terms. Our team has nearly twenty years of experience in commercial lending. Due to existing relationships with most lenders, we know precisely what they are looking for and what formula they use. Documentation that is needed for loan modification
- 2 months of business and personal bank statements for all borrowers and guarantors
- Personal financial statement for all borrowers and guarantors
- 2008 business financial statements for all borrowers and guarantors
- Details of your business debts (Business Debt Schedule)
- Signed authorization form
- Signed 4506T
- Copies of last year personal and business Federal tax returns for all borrowers and guarantors
- Current rent roll for the subject property (if multi-tenant or non/owner occupied))
- Any new or modified leases since origination of Loan.
- Hardship letter (this should explain your current hardship and your need for a loan modification)
- Business Plan/Projection for current year and beyond (what are the plans to keep the business running successfully)
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