Powered by China Products(Top Trade Directory of China Products and Manufacturers) and China Manufacturers(Top China Manufacturers Directory) 网络营销, 网站推广
Formoy Finance&Money Information Service. takes pride in providing honest commercial loans counseling and commercial loan services to you at the best value for your dollar. Our features is a huge commercial loans selection of company, quote, commercial real estate loan, commercial property loan, commercial mortgage loan, commercial loan rate, commercial loan broker counseling, solution, settlement, problem and more.
>> Service Show
Here is how your apartment construction loan or your commercial construction loan will be underwritten. The first test is the Profit Test. Will your finished project be worth more than it will cost to construct? A related test is the Loan-to-Value Ratio. After the project is completed and, say, your strip center is occupied, will the construction loan be less than, say, 75% loan-to-value.

Some of our construction lenders are so hungry for deals that they might even allow 80% loan-to-value. But if you still need more equity, it may be possible for you to obtain a mezzanine loan. Apartment construction lenders and commercial construction lenders often will not trust the appraisal. Instead, they will look to the Loan-to-Cost Ratio. What percentage of the total cost is the construction lender being asked to cover?

Historically developers were asked to cover at least 20% of the total cost of the project, usually in the form of free and clear land. After all, the coonstruction lender wants the developer to have some skin in the game. Modernly, however, apartment construction loans or commercial construction loans up to 90% of cost, or more, are possible. And if the developer needs even more leverage, a mezzanine loan is sometimes possible. Will the apartment construction lender or commercial construction lender be able to get out of the deal? If you build your strip center, will the center make enough money to qualify for a takeout loan large enough to pay off the construction loan?
To determine if the takeout loan is large enough to pay off the apartment construction loan or the commercial construction loan, the construction lender will compute the Debt Service Coverage Ratio. The ratio must usually be larger than 1.25. In other words, the net income from the project must be 25% larger than the proposed payments.

Finally the apartment construction lender or commercial construction lender will look to the developer's Net-Worth-to-Loan-Size Ratio. Generally the developer's net worth should be at least as large the loan amount. On C-Loans you will find at least 50 apartment construction lenders or commercial construction lenders for any size of apartment project or commercial project that you are ready to build.

Commercial property loans from seven hundred different commercial property lenders can be obtained by completing this short commercial mortgage mini-app. Commercial property loans are a type of commercial financing. A property is usually considered a commercial property if the property is other than vacant land, a single family residence, a duplex, a triplex, or a four-plex. A loan on a five-unit apartment building will usually come from a commercial property lender, even though such a property is more precisely known as a multi-family project or a residential income property. In other words, all multi-family loans are considered to be commercial property loans, but not all commercial property loans are multi-family loans. Commercial property loans are the larger set. What if the property consists of a single apartment unit over a storefront? Is this a commercial property or a residential property? After all, there is only one living unit. This kind of property is known as a mixed use property. A mixed use property is considered to be a commercial property and you would go to a commercial property lender to get a commercial property loan on such a property.

Commercial real estate loans are different than the typical commercial loan made to a business. As the name implies, a commercial real estate loan is secured by a rental property, such as an apartment building, office building, or shopping center, or by some sort of business-related property, like a hotel, bowling alley or self storage facility.
C-Loans is a commercial mortgage portal where a user can apply to any one of 750 different commercial mortgage lenders. If you are shopping for a commercial real estate loan right now, please click here.

German Spanish French Italian Portuguese Japanese Korean Arabic Russian
2000-2015 CopyRight © Formoy Finance&Money Information Service. All Rights Reserved.