Choose the Best Commercial Mortgage Loan!
Commonly used to purchase or renovate commercial properties which are occupied by the owner for at least 51 percent of the building are commercial real estate loans. A commercial property which is 51 percent occupied by a business would consider that business as the owner or also called as an owner occupied commercial property. If you need looking for a commercial mortgage loan, check the ones listed below and see which fits your need.
Commercial Hard Money Loan
This is a short term loan which is usually used to renovate or purchase a commercial property. Most of the time, this kind of loan gets refinanced into a long term mortgage. These kind of loans are quite similar to Bridge loans, they help businesses close fast and also offer interest only payments for the loan’s term.
Traditional Commercial Mortgage
This is a standard commercial loan which is issued by either a lending institution or a bank which aren’t both backed by the federal government. These kind of loans are used to refinance or purchase office buildings, industrial warehouses, and shopping centers to name a few.
CDC/SBA 504 Loan for Real Estate
This kind of loan is backed by the US Small Business Association. It helps existing and even new businesses to refinance or purchase a commercial property, it is considered as two loans and has no maximum loan amount. As mentioned, it is considered as two loans since it is financed by a bank or a lending institution and A Certified Development Company. These two will cover as much 90 percent of the property’s price so you only need to cover the remaining 10 percent which is the down payment.
SBA 7(a) Loan for Commercial Real Estate
This loan is backed by the US Small Business Administration and is the most common type of SBA loan. They help businesses refinance or purchase commercial properties for up to $5 million. Most businesses use this loan as working capital but it can also be used to purchase commercial properties. When getting this loan, they will finance 85 to 90 percent of the property’s price so expect a down payment of 10 to 15 percent of the property’s price.
For more details about commercial mortgage, loans, or if you want to get your business funded, simply visit newcityfinancial.com.