Commercial Real Estate
Mortgage Financing
There are countless
variables making many commercial real estate properties unique
including its location, age, condition, use and history.
Commercial Real Estate
financing terms are normally based on two key factors:
1) The Property
2) Its Owner
Your commercial real
estate loan approval is based, in part, on the value of your
investment property. That valuation is done through an
appraisal of i) comparable sales and ii) its
net income to the owner. We will request the property rent
roll and expense schedule as it will help us verify that net income.
If your property is owner-occupied, meaning you operate your
business from its location, we will request a business financial
report to verify its profitability.
The amount of the loan
approval will be compared to the property valuation and expressed as
a percentage, the
loan to value (LTV) . Typically, LTV is limited to no more
than 80% of the valuation. For qualified applicants, lower LTV
percentages frequently result in more favorable rates and terms;
however a lower LTV may be required in special circumstances such as
unique-use properties, limited property history or owner
documentation.
Income producing
investment properties such as multi-family, retail or office
buildings and warehouse are typically underwritten based on the net
income the property produces for its investment owner.
While the property
value can support a calculated loan amount, we also underwrite the
owner's ability to pay the monthly mortgage payments. For
example: if the investment property or business is generating
positive net cash to the owner but he has extraordinary outside
obligations using up all of that cash flow, that will need to be
reviewed. On the other hand, if the cash flow from the
property or business is small and the owner has additional outside
income, that helps the credit analyst confirm there is sufficient
cash, from both sources, to proceed with the approval.
Stated Income, Private
Money or Full Documentation Commercial Real Estate Loans are
Available
When you choose CFN, we
get to work with you on a one to one basis. Formed in 1999 and
with over 30 years of commercial banking experience we can quickly
spot any potential items that may get in the way and suggest action
steps to fix each issue that may keep you from getting approved.
We give you straight answers with no run-around. Once your package
is is ready, we introduce your request to our network of funding
source lenders we believe are prepared to approve a commercial real
estate mortgage for your company profile, location and situation.
Along with your pre-application information we'll ask that you complete,
sign and fax us a form authorizing us to verify your credit along with
exterior and interior digital pictures of the property.
The authorization form can be downloaded in Adobe Acrobat format:
credit authorization form
For more
information about Your Credit Score
click here
Our expertise is in the
complete and correct preparation of your application package so that it gets
approved the first time within our network of financial
institutions that are willing to finance your particular type of business.
Let's get started. To
pre qualify your request, we will need the following items:
Questions? Please
call us at 800-503-1972 or inquire via our
;
a CFN consultant will be
happy to assist you.
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