Multifamily - Commercial Lending Process

[Seetha G]

Hello All

As you all know for a residential property we provide pre-approval for loan along with the offer. 

Will that be same for Commercial properties too? Is pre approval letter mandatory? 

Does commercial lender look into buffer funds in addition to 25% down + closing costs? Or is the loan granted purely based on property performance?

Thanks!

Seetha.

[Stephanie P.]

@Seetha G

Are you primarily looking in CA?

There's a lot of information to cover, but really generally, I've seen loan to value's as high as 75% and  rates vary wildly depending on the level of income documentation.  

Reserves go from 3 months to as much as 6.

Just an FYI; the thing that costs the most with commercial is the appraisals.  I've seen them as high as 5K.

Tip of the day: Get your paperwork in order, bank statements for 3 months at least, have an LLC and for a purchase, you'll need information to present to the lender about the property and the income it's generating.

Best of luck.  If you need any additional information, please don't hesitate to ask.

Stephanie