We Facilitate Commercial Mortgages
A commercial mortgage can be described as a loan given to a business towards the purchase of a commercial property. Commercial mortgages unlike residential mortgages have higher interest rates. A commercial loan is a debt-based funding arrangement between a business and a financial institution, typically used to fund major capital expenditures and or cover operational costs that the company may otherwise be unable to afford.
The loan amount of a commercial mortgage is generally determined based on loan to value (LTV) and debt service coverage ratios, more fully discussed below in the section on underwriting standards.
The term of a commercial mortgage is generally between five and ten years for stabilized commercial properties with established cash flows (sometimes called "permanent loans"), and between one and three years for properties in transition, for example, newly opened properties or properties undergoing renovation or repositioning (sometimes called "bridge loans"). Mortgages on multifamily properties that are provided by a government-sponsored enterprise or government agency may have terms of thirty years or more. Some commercial mortgages may allow extensions if certain conditions are met, which may include payment of an extension fee. Some commercial mortgages have an "anticipated repayment date," which means that if the loan is not repaid by the anticipated repayment date, the loan is not in default.