how we compare
At Lenders Commercial Mortgage, we take a
unique approach to underwriting that benefits you, the
customer. With our residential style of underwriting, we are
able to focus on your ability to repay the loan, not necessarily on
the cash flow of your commercial property.
You will enjoy many additional benefits at
Lenders Commercial Mortgage that are not available with other
commercial lenders such as lower fees, streamlined loan process, and
fewer requirements...
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Other Lenders |
 |
| Maximum
Loan Term |
10-year balloon |
30 years |
| Maximum
LTV |
75% |
97%
|
| Approval
Time |
Credit committees review loan which can take
weeks or months |
48 hours |
| Cash-Out
Refinancing |
Capped: Restrictions on use |
Yes; No business-related usage restrictions |
| Appraisal
Process |
Full Appraisal required |
Full Appraisal required |
| Phase 1
Environmental Review / Survey |
Expensive Phase 1 Environmental Study
required |
Low cost Environmental Insurance Policy |
| Balloon
Payment |
Yes |
No |
| Investment
Property Loans |
Not always |
Yes |
| Assumable
Loans |
Non-assumable or fee required |
Assumable at no cost |
| Documentation
Requirements |
Full commercial underwriting process,
including extensive documentation requirements |
Programs include
a) No income or asset verification
b) Limited verification similar to documentation for
residential mortgages |
| Financial
Covenants/Ongoing Reporting Requirements |
Ongoing reporting required |
None |
| Application
Fee |
As much as $1500.00, even if your loan does
not close |
No |
| Processing
Fee |
Yes, as much as $995.00 |
No |
| Residency |
Yes, you must reside in the same state as
the property |
No; No residency restrictions within the US |
| |
|
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Maximum Loan Term
With loan terms ranging from 15 to 30 years, Lenders Commercial
Mortgage allows you to better manage your business cash-flow. Longer loan
terms allow you to lower your monthly payment and control the speed
at which you build equity.
Maximum Loan-to-Value (LTV)
While most lenders will only fund up to 75% or 80% of the value of
your property, Lenders Commercial Mortgage allows qualified applicants to
borrow up to 97% on certain property types.
What does this mean to you? Whether you are buying a commercial
property or looking to tap into the equity of a property you already
own, our program allows you to maximize your cash-on-hand.
Approval Time
Banks have cumbersome approval committees that require mountains of
documentation and weeks or months to review and decide your loan
request. Simply provide your Commercial Loan Specialist with all
your loan requirements, and we'll notify you within 48 hours if you
are approved.
Cash-Out Refinancing
Our flexible cash-out refinancing allows you to use the cash for
anything, with NO usage restrictions. You can use it to purchase new
equipment, perform property improvements, invest in additional real
estate, or to enhance your business where you need it most.
Appraisal Process
Property Appraisals are often one of the most expensive components
of the commercial mortgage process. As an experienced nationwide
lender, we have an extensive network of qualified property
appraisers. Through a national bid processing system, we obtain
quotes from many appraisers in the area of your property and help
choose the best fit for your loan request, based on quality, price
and turnaround time. Lenders Commercial Mortgage does not charge additional
fees for the appraiser and we turn the discount over to you, the
customer.
Phase 1 Environmental Review / Survey
Most commercial lenders will require you to obtain a Phase 1
Environmental Review of your property, which can cost time and
thousands of dollars.
Our solution is a low cost lender's Environmental Insurance Policy
that is much more efficient and protects against environmental
risks.
Additionally, many commercial lenders will require you to purchase a
property survey which can cost thousands of dollars and delay your
loan closing. In almost all cases, we do not require you to purchase
a new survey to close the loan.
Balloon Payment
Most lenders have "balloon" features in their loans, which
require a customer to pay off their mortgage in just a few years. A
balloon will force you to spend thousands of dollars in closing
costs and go through the entire loan process again.
Lenders Commercial Mortgage loans do not have a balloon requirement. This
allows you to stay in your loan throughout the term of the mortgage
if you choose.
Investment Property Loans
Lenders Commercial Mortgage specializes in loans to real estate investors and
small business owners. Many other lenders will not loan to
individuals whose business does not operate in the subject property.
Deposit Requirement
At Lenders Commercial Mortgage, we understand that deposit requirements can
tie up funds and be a hindrance if you need future access to that
cash. Banks may require you to hold a minimum level of deposits with
the bank in order to qualify for the loan. Since we're not a bank,
you need not worry.
Our flexible commercial lending programs leave your available cash
where you need it: available.
Assumable Loans
Thinking of selling your property down the road? Lenders
Commercial Mortgage's assumable loan benefit allows you to transfer your
mortgage loan to a qualified buyer at no cost to you. This will help
enhance the marketability of your property to potential buyers,
accelerate your closing time frame, and even save your buyer money,
translating into higher sales proceeds for you.
Documentation Requirements
Lenders Commercial Mortgage does everything possible to reduce the amount of
documentation required to underwrite your loan. We only require a
minimal amount of documentation for our underwriting, typically very
similar to what is required for the residential lending process.
Our CD Complete loan option only asks for the minimum documentation
required to fund the loan. We even offer our CD Express loan option
that eliminates income and asset verification requirements
altogether.
Financial Covenants/Ongoing Reporting
Requirements
At Lenders Commercial Mortgage, we do not require either ongoing financial
reporting or covenants.
At most lending institutions, you are required to provide ongoing
financial and operating statements on your business or property long
after your loan has closed. These other lenders may also require you
to make “covenants,” which are legal obligations concerning the
future financial strength of your business. That means that losing a
tenant or experiencing a difficult business period gives those
lenders the right to find you in default of your loan, even if you
are current on your payments!
At Lenders Commercial Mortgage, once your loan has closed, simply make your
monthly payments and we’ll never ask you for more financial
information.
Application Fee
Lenders Commercial Mortgage does not charge any fees until your loan closes.
Other lenders charge as much as $1500 for this "junk fee"
just to look at your application. In some cases the application fee
is non-refundable. The only fee charged by Lenders Commercial
Mortgage is a
$500 lender fee that is payable at closing of your loan, not up
front.
Processing Fee
Similar to the application fee, the processing fee is another
"junk fee" charged by other lenders, even if your deal
does not close.
At Lenders Commercial Mortgage, we do not charge fees throughout the lending
process - no application fee, no processing fee, no fees at all
until your loan closes. The only fee we charge at Lenders Commercial
Mortgage is the $500 lender fee payable at closing of your loan and not up
front.
Residency Restrictions
Other lenders require that you live in the state in which your
property is located. Lenders Commercial Mortgage's lending solutions do not
have residency restrictions, you can live in any state in the nation
and we will fund your loan in any other state.
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