5 Best Commercial Real Estate Loans for 2022
A commercial real estate (CRE) loan is a mortgage used to buy, refinance, or refurbish commercial real estate. Many online and traditional lenders offer CRE loans with slightly different terms, costs, and required qualifications. Business owners need to consider the purpose of a commercial mortgage loan and find the best lender for that loan purpose. If multiple lenders offer loans, choose the one with the best rate and terms for your needs.
Many business loans are fairly versatile. A standard term loan or credit line can pay for a new coffee machine, fund a marketing campaign, or cover billing in the event of a cash flow issue.
But if you're looking at business real estate, such as rentable office buildings, inventory warehouses, or remodeling your current clinic, old business loans won't work. I need a commercial mortgage.
Now, find the right real estate loan for your business. The best commercial real estate out there, from lenders with the best commercial mortgage options, lowest interest rates, and the most reasonable borrower requirements, to what types exist and who has them. Let's talk about loans.
The list below includes the best providers of commercial mortgages and the purposes for which each lender is most often used.
1. US Bank: Best overall, ideal for long-term homeowner-owned commercial mortgages
U.S. Bank offers several types of commercial real estate loans, including SBA loans. This is the best choice for borrowers looking for a real estate loan with a long-term home for up to 25 years. However, with a minimum credit score of 700, US banks have higher credit requirements than other lenders on this list.
U.S. Bank has only physical bank branches, primarily in the Midwest and West 26 states, but mortgage products are available nationwide from the website and local branches. In addition, even states without local branches have loan officers available locally to assist businesses with CRE loans.
You cannot apply directly from the website, but you can submit your contact information via the web form or call the toll-free number to start the application process.
2.JP Morgan Chase: The best commercial real estate loan for apartment projects
JPMorgan Chase is proud to be one of the leading condominium lenders in the United States, promising a cost-effective financial solution with quick loan deadlines. The maximum CRE loan amount is $ 15 million, which will increase to over $ 25 million for apartment projects. New businesses can benefit from JPMorgan Chase's lack of minimum business hours requirements. JPMorgan Chase needs at least 5 units in the apartment building to consider financing an apartment complex.
You can contact us from the JPMorgan Chase website to get started. You can also safely submit your documents online. If you want to meet your lenders in person, there are 13 branches nationwide.
3.SmartBiz: The best online platform for small and medium enterprise (SBA) 7 (a) commercial mortgage providers
SmartBiz is ideal for SBA 7 (a) commercial mortgages. Due to the many small business administration loan-specific requirements, it is advisable to review the SBA 7 (a) loan article to understand what you can expect before you begin the application process.
Due to the SBA guarantee, interest rates on SBA loans tend to be lower than those of online lenders and traditional banks. You can get up to $ 5 million in funding for up to 25 years. Another advantage over traditional bank loans is that you can get up to 90% loan-to-value and reduce the down payment required.
If you prepay more than 25% of your loan in the first 3 years, there is a prepayment penalty for loans over 15 years. Fees are charged for the prepaid amount, 5% in the first year, 3% in the second year and 1% in the third year.
You can enter your business information and perform the pre-qualification process on the SmartBiz website without affecting your credit score. Check out the SmartBiz website for more information or start the application process.
4.Lendio: SBA504 loan ideal for large projects where borrowers may struggle to get a traditional bank loan
Lendio is perfect for SBA504 loans. The SBA 504 loan is a combination of two loans. One is from the lender and the other is from a non-profit lender known as the CDC. Both loans will be closed at the same time. The SBA 504 loan is a good choice as it provides up to $ 14 million in loans over up to 25 years. In addition, the SBA 504 loan allows borrowers to make up to 90% of their loans worthwhile, reducing down payments compared to traditional loans.
The SBA 504 Loan Guide describes the requirements and qualifications required for a loan. Here are some important guidelines to keep in mind before applying for an SBA504 loan for commercial real estate:
Property must be owned by the owner
I need to create a job
Business net worth should be less than $ 15 million
Lendio is a broker that can match you with SBA504 lenders who can help you get the right commercial mortgage. Check that website for more information.
5. Wells Fargo: The best traditional bank loan for HNWI prime borrowers
Wells Fargo is an excellent choice for commercial real estate borrowers looking for traditional bank mortgage lending. Wells Fargo will fund up to $ 1 million in 5 and 10 years, but can be up to 20 years for large projects.
It should be noted that Wells Fargo requires potential borrowers to deposit $ 1,000 when accepting conditional approval of a loan or credit line. If the loan does not end, it will not be refunded, but if the loan ends, it will apply to the applicable fee to be paid at the end of the loan. The unused portion of the deposit will be credited to the borrower after closing.
There is also a prepaid penalty of 3% of the prepaid principal if the loan is repaid within 3 years.
Wells Fargo is suitable for anyone looking for the first commercial mortgage without long-standing business requirements. You can apply at the Wells Fargo website or at your nearest branch office. To get started, contact Wells Fargo to set up a loan specialist.