admin Attention Commercial Investors-Cornerstone Capital Group offers several different commercial mortgage 
financing programs depending on your needs. To qualify, simple complete the short commercial mortgage financing application in this like.
For immediate service call Cornerstone Capital Group at 888.776.0986
What Is Commercial Mortgage Financing?
When a loan is made wherein real estate is the collateral for securing the repayment, a commercial mortgage exists.
In order for commercial mortgage financing to take place, the borrower must approach a bank or building society and apply.
In order to get financing, the borrower must meet certain qualification criteria. The main criterion is the coverage ratio for the debt service.
This is the ratio of cash that is available for the financing. Most lenders require that the borrower have a positive credit rating and proof that the borrowers business is credit worthy.
However, some lenders accept applications regardless of a bad credit history. The majority of lenders will expect the borrower to invest some of his or her own money into the purchase.
The borrower’s current business circumstances are a big determining factor for the lender.
In the majority of cases, the lender will want assurance that the borrower’s business is stable and is turning a profit.
The lender might ask to see the borrower’s business plan as well as the long-term financial projections for the business. This is to assure that the business will have the continued ability to repay the loan.
Some lenders have rigid restrictions on how the commercial property may be used. Some business practices and concerns may be excluded in whole.
Commercial mortgage financing terms depend on the type of business is being run and the specific type of premises or land the borrower would like to buy.
This is a highly complex area and it is, therefore, very important for the borrower to seek the advice of a specialist.
It is almost always the case that commercial mortgage financing is designed to be underwritten according to the attributes that the property has.
This is opposed to the borrower’s credit attributes. Lenders will often require that the property be owned specifically by a single asset entity.
This would include an LLC or corporation that has been organized for the express purpose of handling only the property being currently considered.
This happens so the lender can foreclose in the event of a loan default, even if the borrower has filed for bankruptcy. This is called, “bankruptcy remote.”
This is what differentiates commercial mortgage financing from a normal residential mortgage.
If the latter were the subject of the financing, the lender might have a hard time selling the property where a bankruptcy case may be pending in the courts.
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