Trusted Commercial
Mortgage Consultants

Purchasing a commercial property versus buying a home are two different experiences. The similarity is that both require borrowing from a Lender, however, they are structured differently.

Most home loans 1-4 family residences are issued by a Lender, backed by the Federal Government or a Government Agency, and then they are sold to another Lender for servicing. Commercial Mortgages usually stay with the Lender who originate the loans, these are called Portfolio Loans.

Unlike home loans, which have a longer term, commercial mortgages terms are shorter. Depending on the type of commercial property being financed, the rates will vary as the Lender determine their risk as these loans are not backed by the Federal Government.

The same way commercial properties are different, as such the loans are different. Unlike a home loan, where there are a few different types of loans available to the borrower. With home loans, the borrower must demonstrate the ability to repay the loan based on their personal or business income, with commercial loans, the property has to demonstrate the ability to repay the loan.