How To Get a Commercial Mortgage

To open your small business with sufficient funding, you will most likely need to apply for a commercial loan. Past lending institutions were limited to banks, but private commercial mortgage firms have now flooded the market. As with residential lending, the commercial mortgage business offers two types of lending paths: one for full documentation loans with a lower interest rate, and stated income applications with a slightly higher rate.

When shopping for your commercial mortgage, there are factors to consider with the type of business you wish to operate. Restrictions on zoning apply to most commercial mortgage companies, so be sure your industry falls into the fundable markets. For example, Interbay, a premier commercial mortgage company employs liberal lending policies, but does not finance such structures as churches or buildings situated on agricultural sites. But, fast funding is plentiful for office complexes, shopping malls, gas stations and more.

Another popular commercial mortgage company is Velocity, which specializes in low balance loans for almost every kind of business. Owned by a private New York investment firm, Velocity employs a team of professionals to handle your appraising and environmental inspection reports. To apply for a mortgage, just fill out a quick application online, and a representative will contact you shortly with a mortgage plan tailor-made for your needs.

Another avenue to pursue is to register with a network that shops commercial mortgage companies online for the best deals and incentives. In addition, loan consultants are available for a fee, and the website is filled with helpful tools and links to educate the first-time commercial mortgage applicant.

Whether this is your first commercial mortgage or your last, knowledge is power, and you should take every opportunity to research the industry and seek out the broker with the terms appropriate for you. Typically, the loan with the lowest interest rate seems like the best deal, however, other factors such as challenged credit, land and agriculture, extended payments and no documentation loans play a key role in finding your perfect match. Be wise and seek your funding early, giving yourself plenty of time to evaluate each commercial mortgage contract.


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