The Types of Commercial Real Estate Loans That You Can Get
When starting a business, it is always very important to ensure that you’re doing everything right for example, getting your own premises. The number of small businesses has continued to increase with specific showing that, there are more than 28 million businesses that have opened in the US. For you to secure that kind of business that is going to be of benefit to you, you always need to ensure that these are commercial premises that you have money for. For many of the business people, getting the commercial loans that are going to help them with these real estate would be very important. If you are able to qualify for a loan that is going to allow you to get to those commercial premises where you are going to start your business, you will be up and running in a very short time and this is good for you. There are several types of commercial real estate loans that you are able to get order to qualify for but, understanding which one is good for you can be difficult. The information in this article is going to help you to understand the loans that you’re going to qualify for and how to get them.
The traditional commercial mortgage is the first option that is going to be possible for you and you can use it to buy your property or even, refinance. this is a method that has been used by people for quite a while and it has a number of unique qualities. For you to get these kinds of loans, you need to get them from banks or other kinds of lending institutions. There is no limitation when it comes to the amount of money that you can get with these loans. The down payment that you will be required to pay is going to be 50% of their properties value and this is something that you’re going to get from your own money. 85% of the property value is the maximum amount of money that can be paid by the banks or lending institutions that will be willing to help you. The payments are going to be amortized monthly so that you can make the payments and, the interest rates are not going to be very high for you with a duration of about 5 to 20 years for payment.
If you’re interested in getting a property that has several units, you can qualify for a multifamily loan. With their own qualifications, joint venture loans and hard money loans are also available but also, you could get participating mortgage loans from the relevant institutions that have this option.