Commercial loans can be tricky to navigate. While residential loans follow the traditional guidelines that many are familiar with - debt to income ratio, credit scores, loan to value ratio - commercial loans have a lot more moving parts. Our 30 year fixed hard money commercial loans may be a good option for many people in the market for a new commercial loan - and the reasons may be surprising.
When people think about hard money, they typically think about high interest short term loans. While many products fall into that category, our 30 year fixed California hard money commercial loans certainly do not.
These 30 year fixed commercial loans - while technically hard money - have options that are able to compete with rates offered by the banks. Not only can the rates be competitive with bank rates but the term is a true 30 year fixed loan. Many commercial loans made by the banks are only fixed for 5, 7 or 10 years. The ability to lock in todays rates for 30 full years makes this product very attractive.
In addition to the full 30 year fixed term, we can also offer up to 10 years of that term on an interest only option.
In addition to comparative rates, true 30 year fixed terms and the interest only option, these hard money 30 year fixed commercial loans also offer qualification and paperwork benefits. For loan to value ratios at or below 50%, there is almost no paperwork required. No tax returns, no audited financials, etc. For loan to value ratios above 50%, the paperwork requirements are still much softer than bank requirements. You can even finance the acquisition of a vacant building, producing no income, with this product.
The main requirements are credit (600 minimum fico score required, with tiers at 650, 700 and 750 for improved terms) and loan to value ratio. Debt service requirements are greatly reduced - they are not calculated on LTV's below 50%, and above 50% they are very flexible.
These 30 year fixed loans can be used for commercial property, multi-family, mixed use - even specialty properties. We also have similar programs for residential properties (investment only) with very similar criteria.
It is a unique time right now in the private money world, with products that can be real options to bank loans. With the inflexibility the banks offer, the slow turn times and massive amounts of paperwork, it can make a lot of sense to utilize private options to fund your commercial property.
We specialize in alternative financing solutions. We can help with most types of funding requests within California. We can help finance most property types, including land, construction, distressed properties and more.
If you need a fast close, alternative options to what the banks offer or simply want to discuss what might be available, please give us a call at 877 462 3422. There are a myriad of loan products available these days that were not available even 10 years ago. If you are in the market for financing, it makes sense to learn about all your options!