When it comes to getting a commercial
loan for real estate, you may be asking yourself the following
questions:
What is a real estate commercial loan?
How do I get a commercial loan for real estate?
What can I use a real estate commercial loans for?
What terms and interest rates can I expect from a real estate
commercial loan?
What are the qualifications for a commercial loan for real estate?
Are there loan limits for a real estate commercial loan?
Where can I find a real estate commercial lender?
Are there any government programs to help me get a real estate
commercial loan?
This article will answer all of those questions and more.
What is a Real Estate Commercial Loan?
A real estate commercial loan is a form of mortgage loan used to
buy, renovate, or refinance commercial buildings or land zoned for
commercial or mixed use.
How Do I Get a Commercial Loan For Real Estate?
You may want to be pre-qualified by a commercial mortgage broker who
can find you the best terms and rates for your commercial real
estate loan. Conduct a search for "real estate commercial loans",
"real estate commercial loan", "commercial loan real estate" and you
are sure to find and endless number of possibilities to choose from.
What Can I Use a Real Estate Commercial Loans For?
Real estate commercial loans can be used for purchasing land and
making necessary improvements including grading, utilities, parking
lots, and landscaping. These loans can also be used for the
purchase, construction, or renovation of commercial buildings or
land.
What Terms and Interest Rates and Fees Can I Expect From a
Real Estate Commercial Loan?
Interest rates on commercial real estate loans are based on an
increment above the current market rate for five-year and 10-year
U.S. Treasury bonds. Maturities can be 10, 15, 20, or 30 years. Many
commercial real estate loans require a ballon
payment after 10 years. You may want to consider refinancing at that
time or get a loan that does not require a balloon payment. Fees on
commercial mortgage loans usually total approximately three 3% of
the borrowed amount.
What Are the Qualifications For a Commercial Loan For Real
Estate?
To qualify for a commercial real estate loan, you must have enough
liquid assets to pay a down payment and closing costs. Down payments
on a commercial real estate purchase can go as low as 3%. There is
no down payment requirement for a commercial loan refinance.
Are There Loan Limits For a Real Estate Commercial Loan?
Loan limits on commercial real estate loans differ from lender to
lender. They start as low as $50,000 and can go as high as $50-$100
million.
Where Can I Find a Real Estate Commercial Lender?
It's relatively easy to find commercial lenders and commercial
mortgage brokers online. A good place to start looking for a
commercial real estate lender is online. Do a search for: "real
estate commercial lending", "real estate commercial lenders", "real
estate commercial bank"
Are There Any Government Programs to Help Me Get a Real
Estate Commercial Loan?
The U.S. Small Business Administration (SBA) works with lenders and
non-profit corporations to provide commercial loans to small
businesses through the CDC/504 Program.
The CDC/504 Program provides small businesses with long-term,
fixed-rate commercial loans for major assets, such as land and
buildings. A Certified Development Company (CDC) is a nonprofit
corporation set up to assist in the economic development of a
particular communities. Each CDC covers a specific geographic area.
