Conventional Loans

What Is A Conventional Commercial Loan?

Conventional commercial loans tend to be the most straight forward type of commercial loan. They are what you would expect-a commercial mortgage backed by commercial property. The lender is typically a bank, credit union, or other type of investment institution.

Commercial loans are available through partnerships with various lenders and are available depending on factors like loan-to-value and credit scores.

What type of loan programs do you have for a conventional commercial mortgage?

Loan programs can range from 5 to 10 years for fixed interest rates and no balloon payments. Amortization or interest only options are available with a 20 year term in rare circumstances. Eligible properties include multifamily, office, warehouse, self-storage, and mixed-use, retail and hotel property types. Eligibility may depend on your personal and business income determined by your tax returns. You will need to supply your tax returns for both your business and your personal returns in most cases to verify income and eligibility.

The loan to value for investment properties is 60% and up to 80% for owner occupied properties. Loan amounts can range from 100 thousand to 10 million dollars. These loans are typically full recourse loans. The debt is fully secured and gives the lender rights to assets—beyond just the secured collateral specified in the loan contract. Tax and insurance escrows are not required on all loans, and foreign nationals must have a checking account in a US based bank and a social security number.

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