Commercial Real Estate Mortgages in Southern California
Secure the Best Financing for Your Commercial Property
Commercial Real Estate Mortgages in Southern California
Secure the Best Financing for Your Commercial Property
What Are Commercial Real Estate Mortgages?
A commercial real estate (CRE) mortgage is a loan designed specifically for purchasing, refinancing, or improving commercial properties. These loans are essential for businesses, investors, and developers looking to acquire office buildings, retail spaces, industrial facilities, multifamily apartments, or other income-generating properties.
At ALT Financial Network, we provide tailored financing solutions to help you achieve your business goals with competitive commercial real estate mortgage rates.
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Commercial Real Estate Loans in Southern California
When it comes to commercial real estate mortgages, ALT Financial Network, Inc. is your trusted partner in Southern California. Whether you’re a seasoned investor or a first-time buyer exploring opportunities in the commercial real estate market, our team of experts is here to guide you through every step of the process.
Eligibility for Commercial Real Estate Mortgage Loans
To qualify for a commercial real estate mortgage, applicants typically need to meet the following criteria:
- Creditworthiness: A strong personal and business credit score enhances your eligibility and helps secure better rates.
- Property Type: The loan must be for an income-generating property, such as office buildings, retail centers, multifamily apartments, or industrial facilities.
Not sure if you qualify? Contact us today to discuss your options with one of our experts.
SBA Loans for Owner-Occupied Commercial Properties
If you’re a small business owner looking to purchase or refinance a commercial space you plan to use for your operations, Small Business Administration (SBA) loans can be a smart solution. These government-backed programs are designed to support growing businesses with competitive terms and lower down payment requirements.
To qualify, your business must occupy at least 51% of the property. Other criteria are similar to traditional commercial loans—good credit, reliable income, and a clear plan for use. SBA loans offer added flexibility and are an excellent fit for entrepreneurs seeking to invest in their future with real estate ownership.
How SBA Loans Fit into Commercial Real Estate Financing
SBA loans aren’t just for equipment or startup costs—they also play a powerful role in commercial real estate financing. Designed to help small businesses grow, SBA 504 and 7(a) loans can be used to purchase, renovate, or even construct commercial properties. These loans offer long-term, fixed-rate financing that’s often more accessible than traditional CRE mortgages.
One key factor: the property must be majority owner-occupied. This makes SBA loans ideal for businesses looking to stop leasing and start building equity. Whether you’re purchasing a warehouse, office space, or retail building, an SBA loan can help you secure the property with a lower down payment and more favorable terms.
Common Terms for Commercial Mortgage Loans
Understanding the terms of your loan is critical to making informed decisions. Here’s a breakdown of typical terms for commercial real estate mortgage loans:
Interest Rates:
- Fixed or variable rates ranging from 3.5% to 7%, depending on market conditions and your credit profile.
- Competitive rates for qualified borrowers through our network of commercial real estate mortgage lenders.
Loan Terms:
- Common repayment terms range from 5 to 30 years.
- Shorter terms may offer lower interest costs but higher monthly payments.
Amortization Periods:
- Often set between 15 and 30 years, ensuring manageable monthly payments.
- Balloon payment structures may apply for shorter-term loans.
Loan Amounts:
- Financing available from $500,000 to $50 million, depending on property value and borrower qualifications.
Prepayment Options:
- Some loans offer prepayment flexibility, while others may include penalties.
Speak with a CRE Loan Specialist!
Have questions about mortgage rates for commercial real estate? Our experts are here to help. Call us now at 1-800-981-5626 or schedule a consultation.you every step of the way.
Residential Loans vs. Commercial Real Estate Loans
| Feature | Commercial Real Estate Loans | Residential Loans |
|---|---|---|
| Purpose | Financing for income-generating properties such as office buildings, retail spaces, multifamily units, or industrial facilities. | Financing for single-family homes, condos, or duplexes for personal use. |
| Borrower Type | Can include businesses, partnerships, LLCs, or individuals. | Typically individual borrowers. |
| Loan Amounts | Larger loan amounts based on the property’s value and income potential (e.g., $500,000 to $50 million or more). | Usually smaller loan amounts (e.g., $100,000 to $1 million). |
| Loan Terms | Flexible terms ranging from 5 to 30 years, often with balloon payments. | Commonly fixed terms of 15 to 30 years. |
| Interest Rates | Higher rates compared to residential loans due to increased risk and variable market conditions. | Generally lower interest rates due to reduced risk and government-backed options like FHA or VA loans. |
| Down Payment | Requires a larger down payment, usually 20% to 30% or more. | Typically 5% to 20% of the property value. |
| Repayment Structure | May include interest-only payments with a balloon payment at the end of the term. | Fully amortized with consistent monthly payments. |
| Qualification Requirements | Based on the property’s income-generating potential (Debt Service Coverage Ratio – DSCR) and borrower’s financial profile. | Based on personal income, credit score, and debt-to-income (DTI) ratio. |
| Collateral | The commercial property secures the loan, and sometimes additional assets may be required. | The residential property itself is the collateral. |
| Loan Processing Time | Longer processing time (45-90 days) due to complex underwriting. | Typically faster (30-45 days). |
| Government Programs | Not eligible for government-backed programs; financing typically through private lenders. | Often eligible for programs like FHA, VA, or USDA loans. |
| Who It’s Best For | Businesses, investors, or developers purchasing or refinancing income-generating properties. | Individuals or families buying a home to live in. |
Why Choose ALT Financial Network for Your CRE Mortgage?
At ALT Financial Network, we pride ourselves on being a full-service real estate mortgage brokerage. Here’s why businesses and investors across Southern California trust us:
- Expert Guidance: Our experienced team of commercial real estate mortgage brokers ensures you receive personalized advice tailored to your unique goals.
- Access to Top Lenders: We collaborate with leading commercial real estate mortgage lenders to secure the best rates and terms available.
- Customized Financing Solutions: No two properties are the same, and neither are our solutions. We craft loan packages that align with your financial objectives and property needs.
- Competitive Interest Rates: Gain access to some of the most favorable mortgage rates for commercial real estate in Southern California.
Frequently Asked Questions
Commercial real estate Mortgage Inquiry
Explore Our Other Services
At ALT Financial Network, Inc., we offer a wide array of financing solutions to meet diverse needs. Here’s a list of our core services:
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