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What are the down payment requirements for commercial loans?

by phildonahue from Dillon, Colorado. May 15th 2013 Reply


Fidelity Funding Corp. (FidelityFundingCorp)
#911 ranked lender in California - 3 contributions

Hello Dillon! The down payments are usually between 30% to 40%. This does depend on different factors. The type of business, or type of commercial property, are all considered when pre-qualifying. Income and assets are a large factor as well. Also, whether the property is mix use, solely business use, etc. will determine what you are qualified for. Hope that helps!

May 15th 2013
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Lawrence Thorpe (CommercialRefi)
#106 ranked lender in New York - 14 contributions

MultiFamily 25%, most others 30%. There are programs with 10% down but you would have to call about the guidelines (to many to state here). E-mail me about what you are trying to achieve.

May 15th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

way too much info to answer properly.. The down payment requirements vary from lender to lender on commercial loans.. there are no conforming guidelines, so any company that does commercial lending can come up with their own rules.. for this reason, most commercial lenders want a loan scenario sent over to them before they quote the loan terms... someone wishing to purchase a Church will have different terms than someone seeking a loan on a strip mall gas station.. Also, the commercial lenders will base their terms oftentimes by the experience of the borrower.. if you have had multiple commercial loans in the past, then can be more favorable to you. In general, you can expect to put a minimum of 20%, but that could be as high as 50% down... If you want to know for sure, you should reach out to a commercial broker and call them directly. If you are specific in your quest, he can give you a more accurate quote.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

May 15th 2013
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

As the others have said below it will depend on your particular situation. The down payments will vary depending on property type, use, area, purchase, refinance, investment, owner occupied and on and on. The best solution would be to contact a loan officer directly and go over your options. I would be more than happy to discuss this with you and if for any reason I would not be able to help, I may be able to lead you in the right direction. 303-521-7169 or loanofficerseanyoung@gmail.com

May 15th 2013
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Janine Bodway (jbodway)
#4 ranked lender in Montana - 42 contributions

20-30% is standard but commercial is an individual review as shared. Risk is reviewed in the stability of the business. If you are serious about a purchase gather as much information as you can form the seller such as 3 yrs Returns and Financials, Last Appraisal if any, property info and photos. The put one of us good loan officers to work for you!jbodway@acceptancecapital.com

May 15th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Down payment will range from 25% to 40%. The loan will be based on the net income the property generates, as well as the property value.

May 15th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

between 30% to 40%.

May 15th 2013
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