Whether you’re new to commercial real estate financing, or looking for financing on additional purchase, or refinancing your current property, United Lending Commercial has the experience to meet your goals.

If you need to get a firm understanding of the todays commercial mortgage loan choices, we can fully explain todays current commercial underwriting guidelines. 

Residential real estate uses a debt-to-income formula for judging your ability to repay a loan while commercial real estate is based on the (DSCR)  debt coverage service ratio formula to qualify.  This means that to qualify for a commercial loan,  the property's (NOI) net operating income is the primary tool to qualify the property.  In addition, you’ll need to know what your  targeted projected return on investment (ROI) will be when making a commercial property purchase or refinance.

The cash flow generated from your commercial real estate property will be the primary factors in determining both the value of the property as well as its future return.  The type and amount of your commercial loan is also dependent on other factors, including your business and personal credit history, your net worth or financial strength, the type of property and its overall condition, its cash flow, the geographical location of the property, and the general economic outlook of the local market.

The first step to purchasing and financing your commercial property is to know exactly how you’ll use the property.  What type of property will you acquire?  How will the property be used to improve your cash flow and financial goals?  How long will you hold the property?  Will you be an owner/tenant or just an investor?  And do you have an exit strategy?  These are all questions you’ll want to think about before applying for your commercial financing.

After you’ve established the market need and use for the property, you’ll also want to analyze its current and future cash flow that will contribute to your ROI. 

There are several options available in commercial financing that provide higher loan amounts.  These options allow purchasers to structure acquisitions that they otherwise may not be able to finance with traditional bank financing terms.  Such as:

Cross-collateralized Financing (also referred to as a Blanket Loan) is often used for acquisition or construction projects.  This type of structuring effectively lowers the overall LTV to within a Lender's acceptable parameters by securing the loan with equity in additional properties. 

Mezzanine Financing is essentially a second mortgage, or junior lien.  This type of financing is used when existing senior debt (first mortgage) is insufficient to complete an acquisition or an existing project.  Mezzanine Financing can increase the overall LTV by 5 to 15%, and may or may not include equity participation on the part of the Lender.

· Most commercial property types* up to 90% LTV (higher LTV’s by exception)

· CLTV’s (Seller carry-back) allowed to 90% on most programs

· 100% LTV programs:

· Cross-collateralize with other properties (overall LTV must be below 75%)

· Preferred Equity Program ($5 million min.)- 100% financing with equity “kicker”

· Construction Loans up to 90% Loan-to-Cost

· Small +5% mezzanine loans ($300,000 minimum)

· Mezzanine Loans to 95% CLTV ($1 million min.)

· Hard Money / Bail-Out Loans up to 70% LTV

· Rehab Loans (commercial properties only)

· Minimum loan amount $100,000 (lower amounts on case-by-case basis)

· SBA loans for owner occupied properties (over 51%)

· 15-20-25-30-35-40 year amortizations

· Full Doc and Stated Programs available