Commercial Mortgage Financing
Commercial Financing Built Around the Property and the Deal
Commercial mortgage financing is assessed differently from a residential mortgage. Lenders may review the property’s income, location, condition, tenant profile, borrower experience, business strength and overall deal structure.
Financing Types
Commercial property and deal types
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Retail properties
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Office properties
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Industrial and warehouse properties
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Mixed-use buildings
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Multi-unit residential properties
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Owner-occupied commercial properties
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Construction and development financing
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Commercial refinancing
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Equity take-outs
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Business purchases involving real estate
What Commercial Lenders Usually Review
Property, borrower and deal details
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Purchase price and property value
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Net operating income
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Debt-service coverage
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Rent roll and leases
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Property taxes and operating expenses
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Borrower net worth and liquidity
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Business financial statements
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Environmental and property reports
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Borrower and management experience
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Down payment and source of funds
Commercial documentation and timing
Commercial files usually require more documentation and take longer than standard residential mortgage applications.
Mortgage approval and available financing are subject to lender criteria, borrower qualification, property review and applicable documentation. Commercial and newcomer mortgage requirements vary by lender and scenario.
Next Step
Discuss the property and the deal.
Share the property type, financing purpose, timing and available documentation with Paul.