As your business expands and becomes more profitable, you may find yourself on the hunt for a commercial property. Acquiring a commercial mortgage can give you more leeway as a business owner to find a building or complex best suiting your trade.
A commercial mortgage, also known as a business mortgage, is a loan used to purchase property for the operation of a business.
A business property is often used to store inventory, as office space for retail operations and more. You can also use a commercial mortgage to refinance a commercial property you already own to make loan terms more agreeable.
A commercial loan is usually awarded to corporations, trusts and developers and terms usually fall between 5 and 20 years.
Residential mortgages are awarded to individual borrowers, often who are seeking residential properties (such as a house to live in), with a 30-year term being the most popular option.
To qualify for a commercial mortgage loan, the property being purchased or refinances should be occupied by no less than 51 percent of your business venture. After this is disclosed, lenders consider the location, profit, credit history and other financial factors to determine if giving you a loan is a good investment.
A residential mortgage is often associated with higher interest rates and fees, so it pays to shop around as a business owner. Working with a commercial mortgage lender, you can hunt down the best loan plans offering interest rates and terms to your liking.
Robcon Realty is a family-run real estate company located in Vista, CA. Bob Peterson has been a broker for nearly 40 years, and founded Robcon Realty with his wife, Connie Peterson. Their daughter, Robin Hawkins, followed in their footsteps and has been practicing real estate for over 18 years. Over the past few years, four of Bob and Connie’s grandchildren have become real estate agents themselves to continue the proven track record of excellence and joy our family business has provided in finding the perfect home for you.