Small Commercial Loans

This small commercial mortgage program is still viable.   

This small commercial loan program is for loan amounts between $50,000 -$500,000.  It is for small commercial mortgages only (not an unsecured commercial loan).  Primary benefit is that there are NO 3rd party fees to do the loan...

• No appraisal fee
• No title fee
• No environmental fee(except on industrial buildings)

No typo there.  Funding bank pays for all of these costs.  Savings for borrowers, compared to a typical bank loan are $5,000 or more.  Rates are good as well and there is only a 1% bank fee to fund the loan.  This small commercial mortgage is for both businesses or investors.  Loan comes in 5 year fixed/30 year amortization, 10 year fixed/25 year amortization or 15 year fixed.  Also comes in a commercial equity line.

Small Commercial Mortgage Details 

Besides the 3rd party fees being paid for by the funding bank, some of the other benefits include a streamlined process and relative to most commercial real estate loans, low documentation.  Other details:

• Can go up to 70% loan to value on rate and term refinances
• 70% loan to value on cash out refinances
• Streamlined process with closing normally taking 45 days
• Light documentation
• Purchase at 70% loan to value
• Wide variety of eligible building types, including special purpose properties
• No length of lease restriction like almost all other banks
• No town population restrictions
• See other more detailed FAQ's 

IMPORTANT UPDATE, AS OF JANUARY 2010. 

Due to the credit crisis, the funding bank on this loan program will no longer work with commercial mortgage brokers (which is what we are).  So we can NOT help you with this.  However, if you feel like you qualify, you can buy the name and contact information of the bank from us for $20 via a software program.  As soon as you enter in your information into the Buy Now button below, the name, contact information and website address of the funding bank, will be emailed to you instantly in a Word Doc. 

I, Jeff Rauth, President of Commercial Finance Advisors, Inc, give you my word, that the funding bank on this program is still in business and still funding these loans.  Though I do NOT give you any guarantee that your particular loan will qualify for their small balance commercial mortgage. 

Here are the basic qualifying parameters.  If you answer yes to these you will likely qualify. 

• Have you owned the subject property at least one year?
• For owner occupant (meaning you own and run your business out of the subject property), have you been in business at least 2 years?
• Do you have a minimum credit score of 700?  Click here if your Credit Score is below 700.
• The subject property value is LESS than $3,000,000.
• Is your loan request between $50,000 - $500,000? 
• Does the property meet the eligibility guidelines?  The bank will lend on Office, Retail, Warehouse, Mixed Use, Multifamily at 70% loan to value. 
  
  However, they will lend on special purpose properties but the max loan to value is 60%.  Property types include:   Assisted Living, Auto Repair, Daycare or Preschool, Health Clubs or Gyms, Mini Marts, Nurseries, Self Storage, Restaurants, Theaters, etc.
• You have never filed for bankruptcy or foreclosure?
• Subject property is located outside of Michigan or Ohio?  Ie the funding bank will not lend in MI or OH.   

That is it.  If you answered yes to these questions you should have no problems qualifying for this small commercial mortgage program.