3 Things to Know About Commercial Real Estate Financing
Whether you’re eyeing a second location for your restaurant, exploring opening a brick-and-mortar space for your online shop, are hoping to generate passive income with a rental investment property, or anything in between, your next step might be to explore commercial real estate loans. Here are three things you need to know to prepare for financing the next step of your business’s future.
1. Build Your Credit Score
The first thing you need to know is that any borrowing option will require a credit check. Lenders require a minimum score for commercial real estate loans, but that varies across financial institutions, so it’s a good idea to check first before making long-term plans. Work on building your credit and come talk to us early so we can plan your next steps together.
2. Down Payments Are a Little Different
For standard residential mortgages, aspiring homeowners can put down as little as 3% and up to 20% to avoid paying private mortgage insurance (PMI), but the same is not true for commercial real estate loans. Many lenders require a minimum of 25% down for a commercial real estate loan. That number might sound scary, but our Commercial Lending team can work with you to talk through your plan.
3. You Have Options
You have options, and more of them than you might think.
- Business Auto Loan
- Business Equipment Loan
- Business Line of Credit
- 1-4 Family Residential Investment Property Commercial Mortgage
- 5+ unit Residential Investment Property Commercial Mortgage
- Mixed-Use Commercial Mortgage
- Commercial Industrial Mortgage
- Commercial Construction and Development Loan
- SBA 7(a) Loan
- SBA 504 Loan
You don’t need to know exactly what type of loan you want or need – we’re here to help you figure that out! Our Commercial Lending team knows the ins and out of many different types of commercial real estate financing, including specialized approaches and Small Business Association funding programs. They’ll ask the right questions to find the solution that fits your individual needs.
A Personalized Path Forward
Here’s why we can’t give you a cut and dry to-do list and checklist of things to have ready to get a loan: every business and situation is unique. Our commercial lending professionals are excited to meet you, hear your ideas, and help you find the path forward that fits the specific needs for your business – and that doesn’t fit neatly into a cookie-cutter checklist. Whether you’re just starting out or are a seasoned entrepreneur, our team has the resources and expertise to get you to your next goal.
Michelle Sapienza
VP – Commercial Loan Officer
Office: (978) 323-3237
Mobile: (978) 323-3237
Email: [email protected]
