Updated almost 12 years ago on .
Commercial Loan Rates on Investment Property Are Stable
Commercial Loan Rates on Investment Property Are Stable
Because commercial loan rates charged by private money lenders are not tugged at by the prime rate, these rates remain stable. Banks offering commercial loan products often use the U.S. Prime Interest Rate as their base lending rate and then add a margin based primarily on the amount of risk they assign to a loan.However, commercial loan rates charged by private money lenders are not governed by the same forces that push bank rates up and down. As most know, commercial bridge lenders have higher commercial loan rates but much lower approval requirements.
The presence of commercial bridge lenders is growing in the commercial real estate arena due to delays in FHA from the recent shutdown combined with the tight lending guidelines of U.S. Banks. Let's face it, banks aren't loosening up their cash too easily to lend on investment properties. They are cherry-picking the best of the best deals to lend on and everything else goes to the wayside. Luckily for commercial bridge lenders, the wayside is their side.
To get an idea of the commercial loan rates for investment properties that are being charged by commercial bridge lenders, take a look at our loan programs page here: http://privatemoneyutah.com/loan-programs/
Our commercial bridge loans start at 7%. Not bad for those who can’t qualify for a bank loan or for those who have a need for speed.