Commercial real estate financing: $50,000 – $3,500,000
A Commercial Mortgage is a mortgage using commercial real estate as collateral, or other business real estate. Generally, small business owners will apply for financing to purchase real estate, refinance a commercial real estate asset (such as office, warehouse building, hotel, etc.) or refinance a business with real estate. Our lenders have a variety of Commercial Mortgage options available for business owners.
Commercial Loan Requirements: Using income expense figures/calculations and the rent of the property, lenders decide whether the deal should be full documentation or stated. Full documentation means that the income of the property supports the mortgage payment. Typically, institutions lend at lower rates when borrowers present their case with full documentation. With stated deals, lenders judge the case generally by the value of the property. In this case, interest rates are higher.
Appraisals are normally always required on Commercial Real Estate loans. There are different types of appraisals from AVM’s (Automated Value Matrix), cost approach appraisals and full-blown interior/exterior inspections. For certain properties like convenience stores and industrial warehouses, buyers may request additional environmental appraisals to check for leakages and investigate past violations before qualifying for a commercial loan.
Contact SEG Funding to see what option is best for you.