Real Estate
Conventional Commercial Loans

Conventional commercial loans, also known as grade "A" loans would be for properties such as: Apartment complexes, office buildings, shopping malls, warehouses, mini-storage, hotels and many other types of quality properties. Grade "A" loans also include SBA and HUD loans.

Borrowers of Grade “A” loans who wish to purchase a property should have at least the standard 10%-30% down payment in order to qualify for a 70-90%
LTV loan. Additionally, the property income should be fully verifiable through review of the seller's tax returns for the previous 2 years. Typical interest rates will range between 6-10% on an adjustable or fixed basis with amortization terms between 20 and 30 years. On Grade “A” refinances, the maximum LTV can be as high as 90% when the borrower is just refinancing his/her existing mortgages, or 75% if he/she is seeking a cash out mortgage.

B-C Grade Loans:
Deals that don't fit the Grade "A" profile or the hard money programs fall into this broad category. B-C loans can be for either purchases or refinances. Ideally the borrower will have 20% to 50% down for the deal to work. If the borrower has less than 20% down, the seller must be willing to hold back a second mortgage for between 10% and 40% of the sale price. Stated income loans and not so good credit also fall under this program.


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