For the latest episode of “The Jose Luiz Morales Show,” I’m joined by Jason Ritchie of Mission Bank to discuss the subject of commercial lending.
There are several important differences between residential financing and commercial financing, and as a commercial lending specialist, Jason can outline these differences. If you’ve ever thought about buying an apartment complex of four units or more, buying an acreage, you’re a business owner and you’ve ever thought of buying your own building, then today’s video is a great resource.
Once again, for your convenience I’ve provided timestamps of our discussion so that you can jump around to whichever sections you please:
1:32—What is a commercial loan?
2:45—An example of a commercial loan for a triplex property
3:36—What types of commercial loan products are available to consumers?
6:36—What would the loan-to-value ratio be for an investment property?
8:37—What type of down payment would you need for an SPA loan? Can you buy more than one unit with an SPA loan?
12:09—What kind of payment schedules can you get for commercial loans as opposed to residential loans?
14:52—Are commercial loan rates comparable to residential loan rates?
16:18—How much wiggle room are you allowed?
18:25—Why the sooner you can establish a relationship with your bank, the better off you’ll be
19:41—What kind of down payment can you expect for other commercial loans?
23:28—How the strength of the property, the income it produces, and the strength of the borrower influence its valuation
26:09—Can you have a foreclosure or short sale on your record and still qualify for a commercial loan?
28:23—What else consumers need to know regarding commercial loans
If you have any more questions about this topic, don’t hesitate to reach out to me. I’d be glad to help you.