Aspen Capital Group, LLC offers a wide range of commercial loan programs tailored to each
borrower's unique situation. Full Doc, No Doc, and Stated Income are just a few of the options
available to help you get the money you need. Don't hesitate to contact us with any questions.
We're just a call away at 1-800-778-3146 1-800-778-3146 .
Please select a tab in the left-hand column to see loan specifics.
Commercial Real Estate Loans...FAST, EASY, APPROVED!!!
Understanding Commercial Loans
Applying for a commercial loan can be relatively easy if using a No Doc loan program, or more complex with a Full Doc loan program. Below are some helpful guidelines that lenders use to qualify and approve a commercial loan.
Interest Rates
Interest rates on commercial mortgages will most likely be higher than conventional residential mortgages. The simple reason is that commercial property is historically riskier than a single family residence. Should you stop paying your mortgage and the lender thus forecloses and takes the property, the lender is faced with a longer process to sell the commercial property, thus the higher interest rate. No Doc/Light Doc loans will have a higher interest rate than a Full Doc loan. The obvious reason is, if we can prove your income, then there is less risk, thus a lower interest rate. With No Doc/Light Doc loans, the lender is assuming more risk because we're not showing any income. Other factors that will influence the interest rate is property type, loan-to-value, and credit score.
Loan Terms
Commercial loans are usually amortized over 10, 15, 20 or 30 years. The interest rate can be fixed for 2, 3, 5, 7, or 10 years. A 15 and 30yr fixed rate is sometimes available, but again, the rate will be higher.
Property Types
Properties are grouped into 4 tiers. Each tier has its own interest rate and property guidelines. The higher tier properties are higher risk, thus will have a higher interest rate.
Tier 1
Multifamily, Mixed-use
Tier 2
Office, Retail, Warehouse, Light Industrial, Mobile Home Park, Bed & Breakfast, Self Storage, Automotive
Tier 3
Funeral Homes, Rooming House, Flagged Hotels
Tier 4
Health Care, Day Care, Restaurant, Unflagged Hotels
Appraisals
Commercial appraisals are a lot more involved than a residential appraisal, and thus cost more, averaging between $1200 to $3500. The property type and location will be a factor in cost. Commercial appraisals require more research and often exceed 40 pages in length. Commercial appraisals use three methods to determine the value of a property: comparable sales, income valuation, and replacement cost. Most lenders will place the most emphasis on the income valuation within the appraisal. Lenders want to see that the property can generate enough income to support the debt.
Full Doc vs No Doc
Lenders understand that business owners can have a hard time documenting their true income, especially if you have a good CPA. This is where a No Doc or Light Doc loan can be used. Generally speaking, the underwriter will approve the loan based on the commercial real estate value and not worry about the individual's income. Your credit score should be above 640. The interest rate will be higher than a Full Doc loan, but at least we can get you the money you need.
A Full Doc loan is just what it sounds like. You would need to submit 2-3yrs of business and personal tax returns to prove income. Income amount must be able to support the new loan request as well as your personal debts. This is why No Doc or Light Doc loans are so popular.
"Thank you Doug for your hard work in getting me approved and getting me the money I needed to keep my business going. My current bank was calling my loan and all of my capital was in inventory. Thanks again.
Dennis M
Pennsylvania
Please feel free to contact me to discuss your specific deal.
570-714-7791 570-714-7791 or 1-800-778-3146 1-800-778-3146 or email: aspen11@epix.net
Aspen Capital Group, LLC is located in
Don't forget, you can easily submit your loan request online by clicking the
"submit loan scenerio" button.