Commercial Loan Requirements: The Definitive Guide for Commercial Direct Approvals

By: Zack North

Lenders should be more upfront about their commercial loan requirements.  It’s important to know what kind of loans a lender is likely to approve – and what kinds of transactions simply fall outside their box.

Unfortunately, lenders don’t always make this information readily available.  It’s almost like they want to capture as many multifamily and commercial loan applications as possible, even if it means issuing large-scale rejections later on in the transaction process.

There’s a better way to do business.

We’re going to show you the property and borrower characteristics that make a great fit for Commercial Direct lending programs.

We’ll even tell you what we DON’T do.

So let’s get right to it.

Commercial Real Estate Property Requirements

Commercial properties are far more diverse than the houses that make up your average neighborhood.  While restaurants and self-storage facilities have little in common, they both qualify as standard commercial property types.

Our team understands the ins and outs of a wide range of commercial properties.  Here’s the list of property types that are eligible for Commercial Direct loan programs:

  • Multifamily
  • Mixed-Use
  • Office
  • Retail
  • Light Industrial
  • Self-Storage
  • Warehouse
  • Automotive
  • Mobile Home Park
  • Daycare Center
  • Restaurant/Bar
  • 1-4-Unit Rental

But it’s just as important to know what types of properties we won’t approve.  Knowing this information can save you time when you’re hunting for the best loan solution.

Take a look at our list of ineligible property types below:

  • Environmentally-sensitive properties
  • New construction
  • Raw land and agricultural properties
  • Churches
  • Adult entertainment
  • Properties in need of extensive rehab
  • Special use properties (like marinas, golf courses, and skating rinks)

To get a better idea of the solutions we can provide for different types of commercial properties, head over to our Success Stories page.  You can read about real-life success stories that borrowers like you have been able to create with our team’s help.

Commercial Borrower Lending Guidelines

Are you an investor or small business owner in need of a commercial loan? Despite your solid credit score, are you finding it difficult to work with your local bank?

If so, you could be a perfect fit for Commercial Direct’s alternative lending solutions!

We’ve stripped the number of commercial loan requirements to give you the freedom to customize your commercial loan so it meets more of your specific needs.

This can make a big difference if you’re struggling to provide the tax returns most traditional lenders require, or if you have a larger cash-out request than your bank is willing to accommodate.

Here are some of the most common reasons borrowers like you choose Commercial Direct:

  • Property seasoning: We have no title seasoning requirement, meaning you don’t have to own a commercial property for a set period of time before you’re able to refinance.
  • Fewer cash-out restrictions: We make it easier for you to tap into the equity you’ve already built up in your commercial property.
  • Reduced documentation options: Not able to produce tax returns?  That’s not a problem for Commercial Direct.  Whether you’re looking to finance an investment or owner-occupied property, we can help you secure a loan with fewer documentation requirements.
  • Bank rejection: Banks may offer the lowest rates, but they also turn away many credit-worthy investors and business owners.  If you’ve faced bank rejection but you don’t want to settle for a high-rate, hard money loan, you may be in a great position to partner with Commercial Direct.
  • Speed: Banks can take months to fund your loan – with your help, we can provide the loan you need in a much shorter amount of time.  Want to see how? Watch our video on the steps you can take to expedite the commercial mortgage transaction process.

Location Requirements

Commercial Direct is a division of Silver Hill Funding LLC, a nationwide lender.  We do business in all states except Delaware, Idaho, Hawaii, Michigan, Montana, North Dakota, Nevada, South Dakota, Tennessee, Vermont, West Virginia, and Wyoming.

Like many commercial lenders, we focus on urban and suburban regions.  If you want to finance a property located in a rural area, you may want to look elsewhere for your commercial mortgage solution.

Commercial Loan Guidelines

Let’s close by taking a look at the type of loan you can secure with Commercial Direct.  Keep in mind that customization is a big part of our transaction process – you can choose between a wide range of options and terms to design a loan that truly works for you.

  • Loan Amounts: $250,000 to $2 million
  • Maximum Loan-To-Value (LTV): 80%
  • Minimum Middle Credit Score: 650
  • Loan Terms: 5, 7, or 10-year hybrid
  • Interest Rates: Range from 6-9%

Want to see what kind of solution you can create for yourself?  Try our Loan Customizer now – it only takes a minute to get a clear picture of the type of loan you can get with Commercial Direct.

Getting Started

So you’ve just taken a quick look at our commercial loan requirements. Are you ready to take the next step?

The easiest way to get in contact with one of our commercial mortgage experts is to tell us a little about your loan request right here.  We’ll tell you more about our process and give you easy next steps so you can get closer to securing a commercial loan on your own terms.

Author: Zack North

Zack North is the Director of Marketing for Commercial Direct.  As a regular contributor to a number of top industry publications, Zack enjoys writing about topics that help investors and business owners approach commercial mortgage financing with confidence.

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