Types of mortgages for a commercial building?
October 27th, 2009 | by James |
bsbro
I am trying to purchase a mixed use building (5 residential units and 2-4 commercial stores) in NJ. I know that commercial mortgages are a little different from home mortgages (i.e. there are no 30 year loans).
I am trying to purchase a mixed use building (5 residential units and 2-4 commercial stores) in NJ. I know that commercial mortgages are a little different from home mortgages (i.e. there are no 30 year loans).
What different types of mortgages are available for purchasing a building like this?
Also, the money borrowed to buy a home is called a mortgage, is it also the same term used for buying a commercial property?
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4 Responses to “Types of mortgages for a commercial building?”
By MtgAdvsr1 on Oct 27, 2009 | Reply
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They actually do have 30 year loans! The market has quite a bit of programs for Commercial purchase loans. Most of the financing available is similar to home loans the biggest difference is how you qualify for a home mortgage vs a commercial loan.
We have 30yr, interest only, balloon, and adjustable loans for commercial loans.
When you are buying a commercial property they refer to the money borrowed as a loan and not a mortgage to answer your last question.
Feel free to contact me if you have any questions, I would love to help.
By sensei ronald j.f. panlilio on Oct 28, 2009 | Reply
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I would call lenders to get information on mortgages, make a few calls, they will be happy to help you, ask your agent to recommend a few good local lenders in your area. Talk to 2 or 3 and see who gets you the best loan package for your project, and keep two lenders in place so you have a backup in case the first lender is unable to secure the loan for you
By mortgage man on Oct 28, 2009 | Reply
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Commercial loans have only a little similarity to commercial “business loans”. The common denominator between the 2 is usually you. They almost always use your credit, your current assets, possible using your equity in other sources (as a means of collateral). The other factor of course is the actual property you wish to purchase. If it debt services strongly enough, many options can open up to you. Commercial business loans are a lot more complex than residential and take considerably longer to complete. You would be surprised what is available to in the commercial market for a loan. Each loan scenario has it’s own conditions, and you need a professional consultant to help you find the loan that best fits your need. I know of 30 year loan options, 90% loans, leverage buy-out investments, SBA loans (7A & 504), Stated Income, etc.
By Janet P on Oct 30, 2009 | Reply
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You need to avoid the online predators. Deal only with reputable banks and mortgage companies (such as Countrywide).
Marty, from Premier Loan Sharks has been hunting for victims here for awhile. You need to avoid giving your credit information to online predators. Identity theft is a serious problem, as is simply fraudulent loans.
Fortunately Yahoo deletes him after he is turned in for showing up again at the temptation of praying upon peoples naivety and financial woes.