Q. What information do I need to to get a quote?
A. Basically all we need to have is the type of commercial property, loan amount, income and expense information, a current rent roll (for multi-tenant properties) and front, back, and street photos of the property (photos are not always necessary for all properties) .

Q. What do I need to provide with the signed application?
A. To make sure that the loan process is completed in a timely manner the following information is typically requested by the lender for review:

  • Last 2 to 3 years of personal and business tax returns
  • Operating history including itemization of the expenses and improvements
  • Current rent roll and leases (if applicable)
  • Background / history of borrower(s)
  • Personal financial statements for all investors

Q. Is the property's income a primary factor in the approval process?
A. It is one of the most common reasons a loan is turned down. The majority of commercial lenders are seeking a DSCR of 1.20 to 1 or above on may property types. Debt service coverage is a ratio to analyze how much the debt (property expenses and loan amount) is supported by the property's income. It is expressed as: DSCR = NOI/Total Debt Service.

Q. Do I have to pay a penalty if the loan is paid off before its due?
A. Many commercial property loans do have prepayment penalties. This penalty is activated if the subject property's loan is paid off early or before it is due as agreed to in the closing documents.

Q. My business is seasonal so there are times I need more cash. What type of financing would fit this situation?
A revolving line of credit is typically a smart option for seasonal type businesses. Discuss it with commercial lending expert to make sure it is right for you.

Q. Is The Loan Assumable?
A. This is something you need to inquire about with the lender. They can let you know if it is assumable by a new buyer. Assumable loans allow a buyer to take over the mortgage loan payments and terms. Moreover, it can be a very attractive selling point when rates are high and you secured a low rate. In comparison to residential 1-to-4 unit loans, it is standard policy for commercial mortgages to have a prepayment penalty for early payoff of the loan.