Commercial Real Estate loans
What are Commercial Real Estate Loans?
These loans are used to secure any commercial property, such as retail or large apartment building. These loans can vary in qualifications depending on the intended use.
How do Commercial Real Estate Loans Work?
Unlike the standard residential mortgage that aids in purchasing or building a residential property, a commercial real estate loan finances commercial property projects including:
- Purchase of a commercial property
- Construction of a commercial building
- Renovation of a commercial building
- Refinancing commercial property at lower interest rates
Qualifications for a Commercial Real Estate loans
Qualifications for commercial real estate loans include:
- A credit score of at least 700
- Tax returns up to 5 years
- Projected cash flow through the term of the loan
- A business plan detailing the intended use of the funds
- Business records
- A third party appraisal