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COMMERCIAL FUNDING NETWORK, INC 1-800-503-1972 1-212-658-9003 fax "independent financing for your business growth" |
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PO Box 9584 Niskayuna, New York 12309 home page contact us sitemap search this site
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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. |