Commercial Mortgage

A commercial mortgage is financing for your business property needs.

Commercial mortgage lenders will provide financing to qualified businesses for the acquisition or development of the commercial real estate. Whether your business is purchasing a gas station, office building, or even a golf course, a commercial mortgage is for you. Make sure you have quality business credit scores in place before approaching a potential lender.

Capital TypeCapital Type Definition
Acquisition and DevelopmentExcellent for raw land development including streets.
Adjustable Commercial MortgageInterest can go up and down based on the prime rate.
Construction Mini-PermIncome property construction with 3 to 5-year loan.
Construction Loan with Takeout PackageA takeout loan is arranged prior to construction.
Fixed-Rate Commercial MortgageThe interest rate will stay steady, and will not move during the life of the loan.
Hard Money LoanPrivate lenders provide loans based mainly on the hard asset value like a commercial building or land.
Interim LoanA bridge or project-type loan which is 2 years or less.
Joint VentureA business partner who assists with the funding for real estate development.
Participating MortgageThe lender receives a kicker if the gross income exceeds a certain amount.
Real Estate Sale and LeasebackLender purchases land and leases back to borrower (generally developer) for a fixed rent plus other considerations. Mortgages are issued on leasehold at market rates. Usually, produces more dollars than a mortgage.
Real Estate Purchase LoanLending for the purchase of the commercial real estate.
Second Mortgage (Commercial)Loan secured by equity behind that of the first lien.
WraparoundThe lender makes a second commercial mortgage and assumes the first mortgage.

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