Commercial Real Estate Loans
Commercial Lender in Redding, CA
As a commercial real estate lender, Hard Money Source can provide financing options for commercial properties at competitive terms, even when other local banks have said “No.”
Whether you need a loan for a brick and mortar building, an office building, a shopping complex, a hotel, or an industrial warehouse, you can trust our 18 years of experience in real estate financing to provide competitive rates, quick turnarounds, and a hassle-free loan process.
We offer commercial loans amounts from $100,000 to $5,000,000 and our current turnaround times from application to funding is approximately 30-45 days.
Still have questions about the commercial loan process?
The process for getting a commercial loan is very similar to acquiring a residential mortgage although a commercial lender’s approval is based on the property and the buyer. Below we have outlined the process so you can know what to expect.
The qualification process begins with an application for a commercial mortgage which can be done online through our website. Once the application has been filled out and reviewed, we will have a conversation with you to discuss loan options, challenges, and to clarify any questions that we may have.
Our staff will ask you to provide supporting documentation to verify that the information submitted in the loan application is correct. Documentation requested can include (but not limited to) income generated by the property, tax returns, bank statements, assets documentation, and property income verification.
Conditional Commitment Letter
Once the application is submitted to our processing department, it is sent to our commercial loan underwriter for conditional loan approval. Once the file is approved by underwriting, a conditional commitment letter is issued based not just on the borrower but also on the subject property by calculating the debt service coverage ratio (DSCR), the internal rate of return, cap rate, and net operating income (NOI). The file is always conditionally approved subject to the results of the appraisal.
Once the documentation has been approved, we will order an appraisal. The appraisal process in commercial lending is much more involved & the cost higher than a residential appraisal. The borrower will always be advised regarding the cost of the appraisal before it is ordered.
Underwriting/Final Loan Approval
The final loan approval process includes reviewing and verifying the information in the application, the requested documentation, reviewing the appraisal, and making any other considerations necessary to ensure the loan has the ability to be repaid. Once the due diligence process has been completed, a final underwriting decision will be made for loan approval.
For your convenience we have provided some of the questions we get asked most frequently.
What types of commercial real estate loans are there?
Traditional Commercial Mortgages
Most traditional lenders provide loans for a variety of commercial real estate including office buildings, Industrial buildings, multi-family properties over four units, retail centers & mixed use.
The Small Business Administration loans on commercial real estate that is owner occupied. SBA loans are small-business loans guaranteed by the SBA and issued by participating lenders.
Hard Money Loans
Most hard money loans are made by private companies & require high down payments. They have shorter terms than regular commercial real estate loans & interest rates are usually higher. They are more equity vs. credit score driven.
What types of properties can I finance with a commercial real estate loan?
Apartment Buildings & Complexes (over 4 units)
Industrial & Mixed Use Properties
How much do I need to put down for a commercial loan?
Most commercial real estate lenders require 25% down payment as a starting point. Depending on many qualifying factors, the down payment required could increase.
What is a good commercial loan rate?
A good rate currently is 6.5%, Commercial rates have increased significantly since the beginning of 2018
How long can you finance commercial real estate?
Commercial real estate loan terms can vary. Most commercial lenders have a fixed rate for 5, 10, 15 years with an amortization of 25 or 30 years.