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Mortgage Rates Commercial - How to Search for Commercial Mortgage Rates

loan property loans borrowers

Summary
In a commercial mortgage loan, real estate is used as collateral in consideration for the loan. The collateral is typically a commercial building, land, or some other form of real estate. Collateral does not include residential property for personal use. Unlike borrowers who secure a loan for a residential property, commercial borrowers are typically corporations, limited liability companies, incorporated businesses, and partnerships. These commercial borrowers must be creditworthy and agree to certain conditions in the event of a default on the loan. Therefore, searching for the best commercial mortgage rate is predicated on the type of borrower and the type of commercial property the borrower will use as collateral. The following types of real estate properties can be used as collateral for a commercial mortgage loan:

Apartments
Office Buildings
Hospitality Facilities
Retail Properties

These four types of properties represent standard collateral for commercial mortgage loans. Different rates apply for each type of commercial property and there are steps necessary to determining which commercial mortgage rate is most beneficial.

Step 1: Determine the type of financing you will need for your apartment loan. There are three types of financing options for apartment loans. Steelhead Capital offers three mortgage loan products:

1. Financing for Large Apartment Loans: This product is structured for commercial properties that are high-rise and luxury-style. Townhomes are also included. Financing ranges from approximately $8 million to $100 million. The mortgage loan is specifically for long-term, experienced real estate and market investors. Depending on the type of mortgage loan package, multi-family commercial mortgage rates for a large portfolio of real estate property range from 6.50% to 6.61%, with a 30-year fixed term. This rate is based on a property portfolio that ranges from $3 million to $20 million. This commercial mortgage rate fits within the range of the commercial mortgage loan for the apartment. Therefore, determine how much you will need in order to estimate the best rate.

2. Financing for Mid-Size Apartments: This product is for real estate property that costs between $3 million to $8 million. The commercial mortgage rate for this real estate property would be different if the commercial borrower only wanted to secure a loan for $3 million for a term of five years. The commercial mortgage rate under these conditions would be 4.76% to 4.96% for a five-year term.

3. Financing for Smaller Unit Family Loans: This is a small balance loan product. Financing ranges from $500,000 to $3 million. Under these conditions, borrowers could choose one of two options. They could choose to stay within the category of “multi-family” and receive a lower commercial mortgage rate; or this commercial mortgage loan might be considered as a “special product,” in which the borrower can expect to pay at least 7% for a commercial mortgage loan on this type of real estate property.

These are just a few examples of what the commercial borrower can expect in terms of applying for a commercial loan for an apartment building. For more in-depth information on the other property types, refer to the corporate website.

Step 2: Research commercial mortgage loans program rates. Commercial Banc is a commercial lender that offers commercial mortgage loans ranging from $5 million to $50 million. It provides financing for apartment loans and other commercial real estate. It provides the following commercial mortgage loan products at reasonable rates.

1. Conduit Loan Program: Through this program, Commercial Banc provides a permanent, fixed rate for commercial borrowers who acquire or refinance their commercial property. Conduit loans are typically under $10 million and they don’t require a personal guarantee from the borrower. To lock in a fixed commercial mortgage rate, commercial borrowers must call the number on the website. These are some of the features of the loan:

A. 25 to 30-year amortization
B. Fixed rate term for 5 to 10 years.
C. Loans are available for apartment buildings, hotel (full service and limited service), industrial property, office buildings, retail property, self-storage, shopping center, and warehouse.

2. Stated Income Commercial Loan: Through this program, commercial borrowers who may have been turned down for a commercial loan may apply for a stated income loan with Commercial Banc. The stated income loan product is part of the Flex-Series program where the bank underwrites commercial mortgage loans with a greater risk. This loan is for commercial borrowers who cannot provide sufficient documentation of income. The bank does not require business tax returns or personal financial statements; and there are no monthly annual requirements. The program is called Stated Series Stated Income Commercial Loan Program. Here are some of the key features of this program:

A. Loans start at $500,000. There is no loan cap.
B. The program offers a 15, 20, 25, 30-year amortization.
C. Borrowers need at least a 680 FICO score.
D. Borrowers must have property management experience.
E. Borrowers can receive a fixed rate for up to ten years.
F. The loan is primarily structured for acquisition and purchases.

Other eligible properties include multi-family and multi-use. To get a custom quote on a commercial mortgage rate, click on the custom quote button on the website and follow the steps.

Sources
For more information about commercial mortgage rates and commercial loan packages, visit the following websites:
http://www.steelheadcapital.com/rates.asp
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http://www.commercialbanc.com/stated-income-apartment-loans.html
/> http://www.mortgageloan.com/commercial/

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almost 6 years ago

Commercial mortgage rate
that commercial mortgage rates quoted here are for informational purposes only and change frequently.