Commercial Mortgage Loan

What is a Commercial Mortgage loan?

Commercial mortgage loans are designed to provide financing for the purchase or refinancing of commercial real estate properties. These properties may include office buildings, retail spaces, industrial warehouses, apartment complexes, hotels, and other income-producing properties that are utilized for business purposes.

Key features of
Commercial Mortgage Loans include:

Purpose

Commercial mortgage loans are designed for business real estate transactions, not residential properties.

Loan Terms

These loans generally have longer terms than residential mortgages, often ranging from 5 to 25 years. The loan term can vary depending on the type of property and the borrower’s needs.

Interest Rates

Commercial mortgage interest rates can be fixed or variable and are typically higher than residential mortgage rates. Your rate may depend on factors such as market conditions, creditworthiness, and the lender’s assessment of risk.

Down Payment

Commercial mortgage loans typically require a higher down payment compared to residential mortgages. Lenders often expect borrowers to contribute 20% to 30% or more of the property’s purchase price.

Loan-to-Value (LTV) Ratio

Commercial mortgage loans typically require a higher down payment compared to residential mortgages. Lenders often expect borrowers to contribute 20% to 30% or more of the property’s purchase price.

Personal Guarantees

In some cases, lenders may require personal guarantees from business owners or investors, making them personally responsible for the loan in case of default.

Amortization

The loan amortization period can be longer than the loan term, often 20 to 30 years. This means that while the loan term may be 10 years, for example, the borrower will make monthly payments based on a longer schedule, with a balloon payment due at the end of the term.

FAQ

You can start the application process on our website by filling out the form online, setting up a loan consultation appointment, or calling us on the phone. There is not an application fee.
Your borrowing capacity depends on your income, expenses, creditworthiness, and the type of loan you’re applying for. We’ll work with you to find a loan amount that works with your budget and your comfort level.
We will typically work through this together. You will want to lock in once you are under contract on your home and your loan has been uploaded to the lender.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Closing costs include fees for services such as title company costs, setting up your escrow account (property taxes and insurance), origination fees from lender for underwriting, etc. We typically have the lender pay our origination fee to help keep your closing costs lower.
We offer a range of home loan options, including Conventional, FHA, VA, USDA, Jumbo, Bank Statement, Asset Qualifier, Refinance, Reverse Mortgage, and so many others. Each loan type has unique features to suit different financial situations. Let our expertise guide you to find the one that is right for you.
Loan Approval: You receive final approval from the lender (clear to close). Closing: The final paperwork is signed by all parties and the loan is then funded and recorded.
As mortgage brokers we have access to 60+ wholesale lenders providing you with multiple options for all your home buying needs with lower rates and exceptional service. At Loans By Vicky, we stay in constant contact with you throughout the entire process. We are still here for you even after you close. We love making friends one mortgage at a time!


Get Pre-Approved quickly for your Commercial Mortgage loan through our app!

Follow Me

Looking for mortgage advice and updates on the housing market? Connect with me on social media for the latest insights and personalized assistance. 🌟

Copyright ©2023 | Loans by Vicky. All Rights Reserved. | Licensed in Arkansas (131315), Idaho (MLO-2082035468), Florida (LO99942), Georgia (2035468), Utah (8960153)

Scroll to Top