Definition: A commercial loan is a loan between a business and a bank to fund capital expenditures and/or operating costs. Commercial loans come in two forms - owner-occupied mortgages and investment mortgages. If the property's sponsor(s) use over 50 percent of the building's useable square footage, the commercial loan is said to be a owner-occupied commercial loan. Otherwise the commercial loan is considered to be an investment mortgage. To be considered a commercial loan the property being funded must be zoned commercial and not residential.
Listed below are a few resources that may be beneficial in your understanding of commercial loans and how they work.
For information on how to qualify for a commercial loan please visit our 5 steps to get a commercial loan article. For other questions in the requirements of getting a commercial loan, you may also visit our faqs page, or send us a message through our contact form.
For current commercial mortgage rates you can visit our commercial loan rates page or our apartment loan rates page if the property is multifamily.
The types of commercial loans available are listed as follows:
To find out what type of loan you may qualify for, you may visit our loan finder tool.
To apply for a commercial loan, simply fill out our free quote request. You may also use our free commercial loan forms during the process to help expedite your loan application.
Investment property commercial real estate loans and mortgages by the #1 ranked online mortgage banker.
Commercial Loan Direct offers conventional construction loans for commercial real estate properties, SBA-504 companion mortgages for transactions that are approved via the Small Business Administration, and FHA loans for apartment complexes construction. Property types eligible for construction financing are as follows: industrial, medical, mixed use, multifamily, office, retail, as well as self-storage.
Commercial loans can take 2 different forms – owner-occupied mortgages and investment mortgages. When the collateral is owner-occupied, the property’s sponsor(s) use over 50% of the building’s useable square footage for their personal businesses. Any other use makes the collateral investment property. It is important to note that in order to securitize a commercial loan properly Commercial properties must be zoned appropriately.
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We provide many financing options for hotels and hospitality properties including SBA, Conventional, CMBS, Insurance, and USDA Loan programs.
Not all Lenders or loan programs are created equal and each program has it’s own specific guidelines. That being said, here is a general list of the items you should consider preparing in advance of contacting Lenders for a loan quote*:
NOI is the annual income generated by a property after taking into account all income collected from operations, and deducting all expenses incurred from operations. Use our calculator toy calculate your Net Operating Income.
