Definition: A commercial loan is a loan between a business and a bank to fund capital expenditures and/or operating costs. Commercial loans come in two forms - owner-occupied mortgages and investment mortgages. If the property's sponsor(s) use over 50 percent of the building's useable square footage, the commercial loan is said to be a owner-occupied commercial loan. Otherwise the commercial loan is considered to be an investment mortgage. To be considered a commercial loan the property being funded must be zoned commercial and not residential.
Listed below are a few resources that may be beneficial in your understanding of commercial loans and how they work.
For information on how to qualify for a commercial loan please visit our 5 steps to get a commercial loan article. For other questions in the requirements of getting a commercial loan, you may also visit our faqs page, or send us a message through our contact form.
For current commercial mortgage rates you can visit our commercial loan rates page or our apartment loan rates page if the property is multifamily.
The types of commercial loans available are listed as follows:
To find out what type of loan you may qualify for, you may visit our loan finder tool.
To apply for a commercial loan, simply fill out our free quote request. You may also use our free commercial loan forms during the process to help expedite your loan application.
Self Storage Financing and Self Storage Commercial Loans by Commercial Loan Direct. Commercial mortgage lender offering self storage building financing. Offering lowest rates and lowest closing costs.
Use our commercial loan rates graphs to see how the key markey interest rates are trending.
Student housing apartment loans and student housing multifamily mortgages by Commercial Loan Direct. #1 Rated online lender offering lowest rates and closing costs financing
USDA stands for United States Department of Agriculture. The USDA helps create jobs and stimulates rural economies by providing financial backing for rural businesses and properties. Its primary purpose is to create and maintain employment and improve the economic climate in rural communities.
Commercial Loan Rates & Tools provides a variety of calculators and tools for commercial loans including commercial loan rates, loan package guides, a loan finder to find loan products you qualify for, video guides, and more.
For both new and experienced investors, the commercial loan diligence and closing process can be stressful, and the last thing any borrower wants to think about is their interest rate increasing between submitting their loan application and closing. However, there are several factors that can lead to an interest rate change before the loan closes, which can not only affect investor returns, but potentially down payments if the change is drastic enough. The 5 most common reasons an interest rate increase can happen are the following:
