Commercial Property Loans A commercial property loan is a type of mortgage specifically designed for purchasing, refinancing, or developing commercial real estate. This can include office buildings, retail spaces, warehouses, industrial properties, multi-family residential buildings (5+ units), Single Family, Multifamily 5+ Units, Mixed-Use Property, Office Buildings, Office Condos, Retail Stores, Strip Malls, Adult Care centers, Shopping Centers Warehouses, Self-Storage, Auto Service, Industrial property, Manufacturing property, Medical Offices and much more…we just added 1 to 4 unit Residential Assisted Living Facilities These loans are typically used by businesses or investors who plan to use the property for commercial purposes, generate income, or as an investment. Choosing the Right Commercial Property The type of property you choose can significantly impact your loan terms and overall investment success. Properties in prime locations tend to appreciate more and attract higher rental incomes. Older properties may require more maintenance, impacting your cash flow. Perhaps more importantly is market trends in that different property types have varying risk profiles. For example, retail spaces might have higher risks than office buildings, affecting the interest rate and loan-to-value ratio you can secure. We Can Help You Avoid A Just Missed Special Use Property Opportunity by utilizing our Full, Lite, and No-Documentation Commerical Loan A few examples include: • Income property - Not fully stabilized • Special use property types • Longer, fixed rate amortization periods • High leverage/Loan-to-Value (LTV) ratios • Property in need of renovations, improvements or repairs • Under-leased property At 1st Florida Lending Corp, we have been closing Commercial Real Estate and Investment Property loans in Florida since 2007 offering fast funding by seasoned professionals. So, whether your need an in- the-box or outside-the-box or even if we need to invent-a-box of its own… We have a loan program for you and pride ourselves on our fast-specialized service, our ability to structure for a smooth closing and finding just the right program for your income property needs or special situation Loan Options Purchase Loans • Purpose: Finance the acquisition of a new commercial property. • Loan-to-Value (LTV) Ratio: Up to 75% (subject to qualification). • Interest Rates: Competitive fixed and variable rates available. • Terms: 30 years, and Interest only Arms with amortization schedules up to 30 years. • Income Options: No Income, P & L Statements, Business Income • Credit Requirements: For most programs Credit scores not required • Tradelines: Some trade-lines may be required • Property Appraisal: Only AMC certified appraisal companies allowed; A second appraisal may be required for property exceeding 2 million Refinance Loans • Purpose: Refinance and Cash-out an existing commercial property loan to reduce interest rates, lower monthly payments, or access equity. • Loan-to-Value (LTV) Ratio: 65% to 75% (depending on property type and market conditions). • Interest Rates: We provide competitive rates, with options for both fixed and adjustable rates. • Terms: Flexible terms ranging from 5 to 30 years. Ask your loan officer for more details • Requirements: Current loan details, updated property appraisal, financial documentation. Ground Up Construction Loans • Purpose: Finance the construction of new commercial properties • Interest Rates: Typically, higher than purchase loans, with options for fixed or floating rates. • Terms: Usually 12 to 36 months, with potential for conversion to permanent financing. • Requirements: Detailed construction plans, contractor agreements, project timeline, business financials etc..Ask your loan officer for more details Benefits of Commercial Property Loans • Custom Financing Solutions: Tailored loan structures to fit your business’s unique needs, including different payment schedules and terms. • Equity Access: Refinance to tap into the equity of your existing property for business expansion or other investments. • Tax Benefits: Interest payments on commercial loans are often tax- deductible, reducing the overall cost of borrowing. • Asset Ownership: Owning commercial property allows your business to benefit from appreciation, rather than just paying rent. Eligibility Criteria • This loan relies solely on the appraised value of the property and not the borrower who only has to provide the sources of funds for the down payment, closing costs and some reserves if required. Generally, having a credit score is not required, However, some programs require a minimum 620 middle score. FAQs about Commercial Property Loans Q. How do interest rates on commercial property loans compare to residential mortgages? A. Interest rates for commercial loans are generally higher than residential mortgages due to increased risk. Q. Can I get a commercial property loan with bad credit? A. While having good credit may be beneficial for some programs. Most programs do not require a credit score Q. What is the typical down payment required for a commercial property loan? A. The typical down payment ranges for purchases from 20-30% of the property’s purchase price, depending on underwriting, loan type, credit and financial stability. Q. How long does it take to get approved for a commercial property loan? A. The approval process typically takes as little as 15 days and as much as 30 days, depending on the complexity and unforeseen issue of property and securing the source by the borrower for the down payment, closing cost and reserves