How to Apply for a Commercial Mortgage?

Posted on July 5, 2017 · Posted in Commercial Loans, National Commercial Mortgage lender

Applying for a Commercial Mortgage does not have to be difficult – but it really depends on what type of loan you are looking for.  There are Commercial Conventional Mortgages, SBA Loans, USDA Commercial loans, Stated Income Commercial Loans, and Hard Money Commercial Mortgages.

When applying for a Commercial Conventional, SBA, or USDA Commercial loan you will be required to provide a fair amount of information.  These types of loans will usually be done through your local community bank.  You will be required to provide 3 years of business and personal tax returns, up to date profit and loss statement, year to date income (if you are W2’d), Rent Roll if applicable, Use of Funds Form, Personal Financial Statement, 2 months of Bank Statements, and Schedule of Real Estate.

This may appear to be a lot of documents but the benefit is in the rate.  These types of loans are usually government backed and allow for some of the lowest commercial rates in the nation.  The issue is that this process can take anywhere from 60 days to 4 months to close.  There are very stringent credit score and financial requirements (Debt to Income and Debt Servicing) that unfortunately cause many applicant to be declined 1/2 way through the process.  But as long as you have very strong financials and a great credit score (720+) then this is a great loan option for you.

The other options are Stated Income Commercial Loans and Hard Money Commercial Mortgages.  In many cases Hard Money Commercial Mortgages have no credit score requirements and may not even require an appraisal – the loan is based on the property itself and these loan types generally will not go over 65% LTV (loan to value) with rates in the 12%+ range with terms of interest only for 1-3 years (so this is a short term solution loan).  The benefit to this type of loan is it can close in 7-10 days on average.

Stated Commercial Mortgages usually require a credit score of 600 or better, a max LTV of 70%, and can close in as little as 3 weeks.  These types of loans do require an appraisal, Pictures of the Property, Personal Financial Statement, and a Use of Funds if applicable – No tax returns are required.  Terms are usually amortized over 25 years with rates starting at 7%

At Northeast Financial (that is our company) we offer Stated Commercial Loans throughout the nation on Retail Buildings, Office Buildings, Apartment Buildings, Mixed Use Properties, Warehouses, and Storage Buildings.  If you are in need of a commercial mortgage please feel free to contact me and we can discuss your options.




Michael Meyer
Senior Vice President of Northeast Financial
210 S. Main St Middletown, CT 06457