Commercial Real Estate Loans
A commercial real estate loan is a loan that is used to purchase or refinance a property that is zoned for business use. This can include office buildings, retail space, warehouses, and more.
At JVB-Financial Group we specialize in commercial real estate loans for Land, Offices, Buildings, Investment & Construction. Cash Out/Refi, Business Purpose Second, Hard Money and Franchise Purchases.
How Commercial Real Estate Loans Work
Commercial real estate loans typically have a few different components: the loan amount, the interest rate, the repayment term, and the collateral.
The loan amount is the total amount of money that you are borrowing from the lender. The interest rate is the percentage of the loan that you will be charged in interest. The repayment term is the length of time that you have to repay the loan. And finally, the collateral is something that you put up as security for the loan, such as a piece of property or equipment.
Commercial real estate loans typically have shorter repayment terms than home mortgages—usually between five and 20 years. Additionally, commercial loans often have a longer amortization period than their terms.
The specific terms of your loan will depend on the type of property you are purchasing, your credit history, and the lender you are working with.
Borrowing For Commercial Real Estate is Different From a Home Loan
Borrowing for commercial real estate is different from borrowing for a home. The most important difference is that commercial real estate loans are usually much larger than residential loans.
This is because commercial properties are usually much more expensive than homes. Another difference is that commercial loans are typically for shorter terms than residential loans.
Interest rates on commercial loans are also higher than on residential loans. In most areas commercial real estate is considered a higher-risk investment; therefore requiring higher interest rates.
The specific interest rate you get on your loan will depend on a few factors, including the type of property you are purchasing, your credit history, and the lender you are working with.
In addition to the interest rate, you will also be responsible for paying closing costs on your loan. These can include appraisal fees, legal fees, and other miscellaneous costs.
The total cost of your loan will depend on the interest rate, the repayment term, and the closing costs. Be sure to compare offers from multiple lenders to find the best deal.
What are The Main Types of Commercial Real Estate Loans?
There are a few different types of commercial real estate loans. The most common are term loans, SBA loans, business lines of credit, and bridge loans.
Term loans are the most straightforward type of loan. They are typically for a shorter term than other types of loans, and you will have a fixed interest rate.
SBA loans are backed by the Small Business Administration and typically have lower interest rates than other types of loans. However, they can be difficult to qualify for.
Business lines of credit are similar to personal lines of credit. They can be used for a variety of purposes, and you only pay interest on the amount you borrow.
Bridge loans are short-term loans that are used to finance the purchase of a new property before the sale of your old property is complete.
JVB-Financial Group offers access to loans in most types of lending solutions.
How to Get a Commercial Real Estate Loan
A commercial real estate loan can be acquired in several ways. The most common ways are to work with a bank, credit union, or online lender.
Banks are the most common type of lenders for these loans. They typically have the lowest interest rates but also require the highest credit score. Credit unions are another option, and they often have slightly higher interest rates than banks.
Online lenders are a good option for borrowers with poor credit or who need fast funding. These lenders typically have higher interest rates than banks, but they can be a good option if you cannot qualify for a bank loan.
Why Use Us JVB Financial Group For Your Commercial Real Estate Loan?
JVB Financial Group offers a wide variety of commercial real estate loans to meet your needs. We have competitive rates and terms, and we can work with you even if you have poor credit.
With our years of experience in acquiring funding for all types of business loans, we are uniquely qualified to service your commercial loan needs.
We are here to help you every step of the way. We will work with you to find the best loan for your situation and help you through the application process. Contact us today to get started.