Commercial Loans With Low Down Payments
There are many different types of loans available to borrowers with less than a 20% down payment. These include SBA loans, conventional mortgages, FHA and VA loans, as well as asset-based loans.
The SBA (Small Business Administration) offers several loan programs designed for small businesses and entrepreneurs who need financing but don't have the cash on hand to make a large down payment. The most popular of these programs is the 7(a) Loan Program, which is guaranteed by the SBA. Lenders can use this program when they want to make small business loans with a low down payment or no down payment at all.
Conventional mortgages require at least 10% down for the purchase of a home or investment property, but some lenders may offer products that allow you to put less than this amount down.
Below are a few loan types for you to consider. However, each loan type has it's PROs and CONs. The best way to determine the right loan type for you is to talk to a commercial mortgage advisor.
Call DDA mortgage today to discuss your options,
(727) 784-5555. Or ask a question using the form below.
SBA Standard 7(a) Loan
The 7(a) loan is the most common SBA loan and is the best option when used to purchase commercial real estate. The loan includes financial help for small businesses with special requirements.
Commercial Bridge Loans
Commercial Bridge Loans allow borrowers interim financing during a non-residential property stabilization, which generally requires improvements of the property condition or rental occupancy rate, until permanent take-out financing is achievable.
Asset-Based Loans
Asset-based loans provide borrowers an opportunity to leverage the value of the property as well as other hard assets to secure a loan. There are two property types to consider when applying for an asset-based loan, residential and commercial.
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SBA 504 Loan Programs
The 504 loan is a common SBA loan and is your best option for fixed-rate and long-term financing for fixed assets such as buildings, facilities, and land.
Conventional Loan Programs
Conventional commercial loans tend to be the most straight forward type of commercial loan. They are what you would expect-a commercial mortgage backed by commercial property. The lender is typically a bank, credit union, or other type of investment institution.
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