Commercial Building Loan

Commercial Building Loans are distinguished initially in two classifications; investor property and owner occupied or owner user property. Rates, terms and underwriting constraints will depend on which classification your commercial building falls.

If your business will occupy more than 51% of the commercial building it will be classified as an owner occupied property. These properties may qualify for SBA or USDA guaranteed loans which will allow for more lenient underwriting. These can also be funded through conduit and insurance sources with a conventional approach if the loan request is strong enough.

If your business will occupy less than 50% or no space at all in the building, it will be treated as investor property. There are a few programs that exist to help expedite loan requests of this type. Other than those programs you will be subject to conventional underwriting. These properties have a higher success in acquiring a loan if they have historical performance that supports the debt payments. If the properties are under performing you will most likely need a bridge financing source or hard money.

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