LOAN PROGRAM
Commercial Financing
Commercial loans are a popular option for businesses and investors who need to finance the purchase or refinance of commercial real estate properties. They offer the ability to borrow large sums of money with flexible repayment structures and competitive interest rates, but they also come with stricter eligibility requirements, higher fees, and more documentation than residential loans
Loan Type:
Commercial loans are loans that are used to finance the purchase or refinance of commercial real estate properties, such as office buildings, retail centers, and warehouses.
Eligibility:
To qualify for a commercial loan, borrowers typically need to have a strong credit history, sufficient cash flow to repay the loan, and a significant amount of equity in the property.
Loan Amount:
The loan amount for a commercial loan is based on the appraised value of the property, as well as the borrower’s financial and credit profile.
Repayment:
Commercial loans may have a variety of repayment structures, including amortizing loans (where the principal and interest are paid over time) and balloon loans (where a large payment is due at the end of the loan term).
Interest Rates:
Commercial loan interest rates vary depending on the borrower’s creditworthiness, the loan-to-value ratio, and the type of loan. Rates may be fixed or variable.
Fees:
Commercial loans may have upfront fees, such as application fees, appraisal fees, and closing costs, as well as ongoing fees, such as servicing fees and late payment fees.
Documentation:
Commercial loans typically require more documentation than residential loans, including detailed financial statements, tax returns, and business plans.