Commercial Mortgages for California and the Western US
Especially in our current market, it is extremely challenging to secure an attractive commercial mortgage. Unlike residential lending, there is no "unifying force" such as Fannie Mae or Freddie Mac. Every lender has its own rules and requirements. They set their own rates and terms, guidelines and standards.
Understandably, one of the first questions we’re asked from potential commercial borrowers is “What will my interest rate be?” Unfortunately, that question cannot be accurately addressed until we understand your situation. Any lender who gives you a quick answer to this question is either inexperienced, naïve, or deceptive.
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Your local San Carlos mortgage experts.
Contact Bay Area Capital Commercial Mortgage for great rates and personal service.
If you’re new to commercial real estate financing, you’ll want to get a firm understanding of the differences between a residential and commercial mortgage loan. Residential real estate uses a debt-to-income formula for judging your ability to repay a loan, while commercial loans are based on the debt coverage service ratio formula to qualify. This means that to qualify for a commercial loan, you’ll have to know what your projected and historical return on investment (ROI) will be when making a commercial property purchase or refinance. We can calculate these numbers for you.