What are the major requirements for a commercial mortgage?
Similar to typical mortgage loans, commercial mortgage loans let you borrow money to secure any land or property for a business rather than a residence. Additionally, you can use commercial mortgage loans to develop both new and existing commercial property. You can also use the loan money to expand your current space if you already own commercial real estate.
Lenders see commercial loans as carrying a larger risk than residential mortgages. This is because a commercial loan is privately funded and is not guaranteed by a government agency like Freddie Mac or Fannie Mae.
The requirements and standards of a loan will vary because not all commercial mortgage loans are the same. Each lender will have a different minimum credit score requirement, required years in operation, loanable amount, and other terms. A lengthy list of requirements must be met in order to be considered for a commercial loan, and the lender may require continued documentation during the term of the loan.
Listed below are some of the financial documents you will need to submit your application: