COMMERCIAL AND INVESTMENT PROPERTIES
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Over the Past several years, the commercial and non-traditional investment mortgage landscape has changed dramatically from previous decades. As fewer and fewer banks are providing loans for commercial and investment properties, new niche lenders have filled the void with financing options to fit almost any situation. Bachman Lear is at the forefront in establishing relationships with these lenders and can help you or your business get the loan you need for commercial or non-traditional investment properties.
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Commercial and Non-Traditional Investment Mortgage Property Types
Property that qualifies as Bachman Lear's Commercial and Investment Mortgages are:
- Single family to 4 unit family dwellings that are not owner occupied and are owned by a corporation or LLC. (If the property is owned by an individual then this is considered a conforming mortgage and not a commercial mortgage)
- Any multi-family dwelling over 4 units (apartment buildings, condominiums, etc.) owned by a corporation, LLC or individual
- All commercial zoned buildings such as office buildings, strip malls, warehouses, hotels/motels, retail buildings, etc. owned by a corporation, LLC or individual
Qualifications
The strict qualifications for securing a commercial loan from a bank in the past are just that - in the past. With the growing number of niche commercial investment lenders, there are mortgage programs with diverse qualifications to fit almost any need. Some of the new and exciting options available for borrowers are:
- 65% to up to 70% LTV (or higher in some cases)
- Loan amounts from $50k to $5M and more
- Stated Income and No Income Verification Options
- Average Credit (620-650+) to No Credit Qualifying (Even Recent Bankruptcies may be approved in some cases)
- Stated Assets to even No Assets Programs
- Fix and Flips and Interest Only Options
- Foreign Nationals (non-owner occupied)
Terms and Rates
Typical terms for commercial mortgages are 2, 3, 4 and 5 year balloons usually paid on a 20 year schedule. However, there are some new programs with up to 30 year fixed rate terms available now.
Interest rates for commercial loans vary significantly depending on the terms and the program. As a rule of thumb, though, interest rates are higher than traditional residential mortgages and the more risk involved, the higher the rate should be expected.
Interest rates for commercial loans vary significantly depending on the terms and the program. As a rule of thumb, though, interest rates are higher than traditional residential mortgages and the more risk involved, the higher the rate should be expected.