CommercialBanc
  The 3 C's of Commercial Mortgage Loans  
Contact CommercialBanc at 1-866-706-BANC
Multifamily Lending - Apartment Loans and Multifamily Loans Commercial Lending - Commercial Loans Conduit Lending - Conduit Loans Small Balance Plus Commercial Mortgages How to Get Started With CommercialBanc
CommercialBanc
CommercialBanc CommercialBanc CommercialBanc
CommercialBanc
SP
 

 Commercial Mortgage Loan Quick Links

 Apartment Loans Under $5 Million

 Apartment Loans Over $5 Million

 Commercial Loans Under $5 Million

 Commercial Loans Over $5 Million

 Conduit Loans Minimum $1 Million

 Small Balance Plus Commercial Loans

 Small Balance Plus Apartment Loans

 

Commercial Lending Simplified

 
 

SP

SP

Home  >  Commercial Mortgage Loan Center  >  3 C's of Commercial Real Estate Loans

 
SP

The 3 C's of Commercial Mortgage Loans

back to the 3 C's of commercial real estate loans

Commercial Investment Property Loan Collateral (cont.)
The commercial loan underwriting process places great importance upon a commercial appraisal when assessing the collateral for the commercial real estate loan. A commercial appraisal utilizes three variables to derive the commercial real estate's value, income approach replacement cost, and sales comparison method. 

  • Heavy emphasis is placed on the income approach valuation method. Other key factors a commercial lender will review in the appraisal are: property's age, area market capitalization rate, comparable properties, vacancy rates, and the general overall condition of the property.

2.  Commercial Investment Property Cash Flow
The cash flow derived from the gross rents of a property is one of the most important factors commercial lenders use when approving or denying a commercial mortgage loan request. An underwriter will review the historic income generated from the property, with a focus on the most recent 90 days.

3.  Borrower/Guarantor Credit
Credit can be defined as the combined personal credit of the borrowers/guarantors. If a corporation, partnership, Trust, REIT, or other non-natural person is the borrower, than the credit of the entity will be considered as well, although to a lesser degree.

Minimum personal credit requirements for a commercial loan are:

  • 620 minimum credit score
  • No personal bankruptcy in the past 7 years
  • No open tax liens or judgments

The 3 C's of Commercial Lending™ are the basis for underwriting a commercial loan request.  Commercial mortgage loan requests that meet these basic requirements create the foundation for a successful commercial loan approval. 

But keep in mind, this doesn't necessarily mean that a borrower that meets these requirements is automatically approved for a commercial mortgage loan. But rest assured, not meeting any one of the 3 C's of credit will surely end in denial of your commercial loan request.

back to the 3 C's of commercial real estate loans

This article is protected under the copyright laws of the United States (title 17 U.S. Code).
Any unauthorized use is strictly prohibited. If you would like to reprint this article for use on a commercial website, please contact CommercialBanc for more information.

SP
 
CommercialBanc
Footer

About  l  Contact Us  l  Privacy Policy  l  User Agreement  l  Apartment Loan Center  l  Commercial Loan Center  l  Conduit Loan Center

Commercial Lenders & Partners  l  Commercial Mortgage Brokers  l  Commercial Mortgage Blog  l  Commercial Mortgage Articles

CommercialBanc is an online commercial lender and apartment lender providing borrowers with a simplified way to obtain commercial real estate loans or multifamily loans through standardization and a product driven online platform. 90% apartment financing available in select markets.

CommercialBanc Commercial Mortgage Home

Copyright © 2007 CommercialBanc.com

Commercial Lenders License #CL0701940

Footer