Guidelines for commercial mortgage loans, as well as other types of commercial loans, have changed a lot in the past five years. The commercial mortgage guidelines are more closely related to valuations, advances, and types of property.
The current type of property, including apartment buildings, business property occupied by owners, and investor property with larger down payments and long-term leases. You can also get more info about real estate investment loans via online sources.
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Empty property that relies on projected income is no longer considered. Also, retail property without anchor tenants and retail or office property with many short-term leases are seen as unprofitable.
Lenders insist on the nature of cash flows and do not want to see a disruption in the expected cash flows during the loan period.
The days of financing are 100% and no offer of down payment ends. Now, advances rarely fall below twenty percent. Lenders want their customers to have "skin in the game", or money invested in the project.
The lender looking for something else is good personal credit. Housing mortgages offer programs such as FHA that allow for less than perfect credit. These programs are not in the commercial arena.
So, if you have a short or delinquent sale on a loan at this time and you are looking for help, the commercial lender will not offer anything.
Even though the guidelines are more stringent, if you have good credit and a down payment that qualifies, there is good news for owners and buyers of commercial property.