Commercial Property Hard Money Mortgage Loans

Commercial Property Hard Money Mortgage Loans are specialized financing options designed for investors, businesses, or developers who need quick access to capital for purchasing, refinancing, or renovating commercial properties. Unlike traditional loans that rely heavily on the borrower’s credit score and financial history, hard money loans prioritize the value and equity of the property itself. This makes them an ideal solution for those who might not qualify for conventional financing due to credit issues, time constraints, or unique property conditions.

At Custom Mortgage and Real Estate, we understand the complexities of commercial real estate transactions. Our Commercial Property Hard Money Mortgage Loans are tailored to meet the needs of clients seeking fast and flexible funding for properties like office buildings, retail centers, warehouses, and multifamily units. Whether you’re looking to acquire a property quickly, fund a renovation project, or bridge a short-term gap until longer-term financing can be secured, our hard money loans offer a reliable solution.

These loans typically feature shorter terms, often ranging from 6 to 36 months, with higher interest rates than traditional mortgages due to the increased risk and expedited nature of the funding. However, the streamlined approval process—focusing more on the property’s potential than on your financial background—ensures you get the funding you need without unnecessary delays. At Custom Mortgage and Real Estate, we work closely with you to understand your goals, structure the loan to fit your needs, and support your success in the competitive world of commercial real estate.

Max LTV:

Eligible Properties:

Mixed-use, 5+ Units, Office, Industrial, Retail, Automotive (no gas, dealer, body shop), Gas Stations, Churches, synagogues, temples, Energy production and transmission, Hospitality (hotels and motels), Leisure (golf course, marina, RV park, etc.), Medical (hospitals, clinics, rehabilitation), Mobile/manufactured home parks, Municipal, public works financing, Non-owner-occupied residential, Self-storage, Single-tenant buildings, Specialed-single-purpose buildings, Apartments, Corp. apartments, Hi-Rise apartments, Apts. over retail, Condo building/complex, Lofts, Manufactured housing park, Assisted living, Senior housing, Student housing, Low-income Housing, Restaurants, Entertainment, Other or

Amortization Terms:

12 months, 24 months, 36 months

Max DTI:

Occupancy Types:

Owner Occupied, Non Owner Occupied

Minimum Loan Amount:

100000

Maximum Loan Amount:

100000000

Minimum Mid Credit Score:

500 FICO

Fast Approval:

Receive funds quickly, often within days.

Flexible Terms:

Customized loan structures to fit your project.

Property-Based:

Approval is based on the property’s value, not your credit.

Short-Term Financing:

Ideal for quick turnarounds or interim financing.

Minimal Documentation:

Streamlined process with less paperwork.

✓ Income:

DSCR, No Income

✓ Assets:

Verification of down payment if purchase – 2 months of bank statements for reserves

✓ Insurance

12 months of hazard insurance coverage paid at closing

✓ Title – Title:

insurance paid at closing

✓ Identification:

Copy of Drivers License/ID/Passport

✓ Valuation Requirement:

Appraisal or BPO or AVM

Conventional Loans

Ideal for borrowers with strong credit scores, these loans are not backed by the government and typically require a higher credit score and down payment.

Max LTV: 97-100%
Max Loan amount: varies by county
Rate Range: 5.25% – 8.75%
Min Credit: 640 FICO Score

Jumbo Mortgage

Designed for financing high-value properties, these loans exceed the conforming loan limits set by Fannie Mae and Freddie Mac.

Max LTV: 80%
Max Loan amount: $5,000,000
Rate Range: 6.25% – 9.5%
Min Credit: 640 FICO Score

Government Mortgages

FHA, VA, and USDA loans, these are perfect for borrowers with lower credit scores or down payment assistance

Max LTV: 85%
Max Loan amount: $10,000,000
Rate Range: 6.25% – 9.5%
Min Credit: 500 FICO Score

NonQM Stated Loans

Ideal for self-employed individuals or those with non-traditional income sources, requiring less documentation:

Max LTV: 90%
Max Loan amount: $25,000,000
Rate Range: 6.75% – 9.75%
Min Credit: 560 Middle FICO Score

Reverse Mortgage

Available for homeowners aged 55 or older, allowing them to convert home equity into cash without monthly payments:

Max Loan to Value: 75%
Max Loan amount: $4,000,000
Rate Range: 7.25% – 12.5%
Min Age: 55 years old

What are Commercial Property Hard Money Mortgage Loans from 6.99%

Commercial Property Hard Money Mortgage Loans are a unique financing option designed to meet the needs of real estate investors and developers who require quick, flexible capital. Unlike traditional loans, which are often contingent on the borrower’s financial health and credit history, hard money loans are secured primarily by the property itself. This asset-based lending approach enables borrowers to obtain financing even if they do not qualify for conventional loans, particularly when speed is essential or the property doesn’t meet standard criteria.

These loans are often used for situations where traditional financing is unavailable or impractical, such as short-term investment properties, renovation projects, or properties in need of significant improvements. Hard money lenders, like Custom Mortgage and Real Estate, provide a solution by focusing on the property’s current and potential value rather than solely on the borrower’s financial situation. The result is a loan process that is faster, more streamlined, and more accessible for a wider range of borrowers.

With terms typically ranging from 6 to 36 months and Loan-to-Value ratios up to 75%, Commercial Property Hard Money Mortgage Loans are a powerful tool for seizing opportunities in a competitive market. They offer the flexibility and speed necessary to capitalize on time-sensitive investments, making them an essential option for savvy real estate professionals.

At Custom Mortgage and Real Estate, qualifying for a Commercial Property Hard Money Mortgage Loan is straightforward and designed to get you the funds you need with minimal hassle. Here’s what you need:

Property Value: The most important factor. We assess the value of the commercial property as the primary basis for loan approval.
Equity: Having substantial equity in the property improves your chances and the terms of your loan.
Clear Exit Strategy: A solid plan for how you will repay the loan, whether through refinancing, selling the property, or another method.
Down Payment: Typically, you’ll need a down payment or existing equity, often 20%-30% of the property’s value.
Business Plan: A well-thought-out plan for property use, particularly if you’re seeking funds for renovations or new developments.
Proof of Funds: Showing that you have the means to cover any upfront costs or make necessary improvements.

How to qualify for Commercial Property Hard Money Mortgage Loans from 6.99%

Why Choose CMRE for a Commercial Property Hard Money Mortgage Loans from 6.99%

Choosing Custom Mortgage and Real Estate for your Commercial Property Hard Money Mortgage Loans means partnering with a company that prioritizes your success. We are committed to providing:

Personalized Service: We tailor each loan to your specific needs, ensuring the terms align with your goals.
Expert Guidance: With years of experience in the commercial real estate market, we offer valuable insights and advice.
Quick Funding: Our efficient processes mean you can close deals faster, giving you a competitive edge.
Flexible Solutions: We offer a wide range of loan options, ensuring we can find the right fit for any situation.
Local Market Knowledge: Our deep understanding of the local real estate landscape allows us to structure loans that work best for your area.
Transparency: No hidden fees or surprises—just straightforward, honest communication.

1. What is the typical loan term for a Commercial Property Hard Money Loan?
Loan terms usually range from 6 to 36 months.

2. Can I use a Commercial Property Hard Money Loan hard money loan for property renovation?
Yes, these loans are ideal for renovation projects, especially if you need quick funds.

3. What types of commercial properties are eligible?
Eligible properties include office buildings, retail spaces, warehouses, and multifamily units.

4. How quickly can I receive funding?
Funding can be completed within a week, depending on the loan complexity.

5. Do I need a high credit score?
No, credit scores are not a primary consideration—property value is.

6. What fees are associated with these loans?
Expect fees for appraisal, origination, and closing. These are typically rolled into the loan.

7. Can I refinance a hard money loan?
Yes, many borrowers use hard money loans as a bridge to more permanent financing.

8. What is the required down payment?
A down payment of 20% to 30% is usually required, based on the property’s value.

9. What is a typical exit strategy?
Common strategies include selling the property or refinancing into a traditional loan.

10. Is there a prepayment penalty?
Terms vary, but some loans may include a prepayment penalty.

11. Can I get a loan for a distressed property?
Yes, hard money loans are often used for properties needing significant repairs.

12. How does LTV affect my loan?
A higher LTV ratio could mean higher interest rates, but also lower upfront costs.

13. Are there any location restrictions?
We specialize in the local market but can accommodate various locations based on property and client needs.

14. Can I borrow against multiple properties?
Yes, portfolio loans are available if you have multiple properties to use as collateral.

15. What documentation is required?
Minimal documentation is needed, typically just proof of property value and an exit strategy.

16. Are interest-only payments an option?
Yes, interest-only payment options are available to help manage cash flow during the loan term.

17. How does property condition affect the loan?
Properties in good condition may qualify for better terms, but we also finance distressed properties.

18. Can I use a Commercial Property Hard Money Loan for new construction?
Yes, these loans can be used for ground-up construction, especially for experienced developers.

19. What is the difference between a bridge loan and a hard money loan?
Bridge loans are typically short-term financing solutions, while hard money loans focus more on property value rather than the borrower’s financial profile.

20. Is there a minimum loan amount?
Loan amounts typically start at $100,000 but can vary depending on the property and project scope.