🏢 Commercial Loans | Mortgage Rates LIVE

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Join us LIVE to review Daily Mortgage Rates and dive into Commercial Real Estate Mortgage Loans, designed for non-residential lending that expands the audience beyond traditional residential buyers.

We’ll break down loan structures, eligibility, and key considerations for investors and businesses seeking financing for commercial properties.

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The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages...

Transcript

Our topic today: commercial loans. Obviously, we can do those in many other states as well. So what we do every day is we go over the live rates, go over the markets, a lot of news around rates lately. But we'll check out what's actually happening, pull up our live rates for today, and then we'll get into a deep dive on a specific loan type today. We'll be going over commercial loans.

I have three common scenarios. The picture there might be a little misleading. We're not purchasing giant skyscrapers here, but we're gonna go over some more common requests that we receive here at The Mortgage Calculator. If you'd like to receive a full quote, the full loan estimate with all the itemized info that you need, please get with one of our team members. We'd be happy to help you out.

You can visit our website or drop a comment here. Let me go ahead and switch my screen, and we will check out today's live rates for our most... so what we usually wanna look at when we're talking about right here is the ten-year Treasury. Let me pull it back to the last five days—a lot of news and creeping up a little bit. If we check the news every day, there's going to be some movement, but we always wanna check. We're pretty much at one-year and even three-year lows in some cases.

So a great time to be out there shopping or looking to refinance here if you are in the market. Let's check out our live rates for our standard program. So for today here, we always use a common scenario so we can compare the rates across all the different programs. We set up here a standard unit: single-family home, $500,000 purchase, $300,000 corresponds to 60% loan to value, set at 60 FICO, 40% debt-to-income ratio. That way we pair all the programs across the board here, all the standard programs that we're over today, but there are dozens of options here on this page for all the different unique programs we offer.

So first up, the conventional option for a pro: when you think of a mortgage, typically a standard thirty-year fixed. Rates come in today as low as 5.75, finally then 6.02. If for any reason our customer doesn't qualify for a conventional option, we typically want to look at FHA, which allows more leniency with credit issues and a higher DTI, but does have additional fees for insurance. Rates today come in a little bit lower, 5.25, but when you factor in all fees there, the final APR ends at 6.155.

So that's why we always wanna hear the different options. And our VA options for our eligible vets and active service members: VA programs are pretty amazing here. You see rates at 5, and the final APR much lower than FHA when you're comparing side by side at 5.5, with lower fees for our vets there.

And another standard option: USDA, for USDA-eligible properties. Those are the rural areas of the country that are USDA-eligible. If our property is eligible and our borrower is eligible, we may want to look at these rates. Finally, PR 5.686. So typically, we would compare that to FHA or conventional.

And where we love to shine on The Mortgage Calculator are non-QM options. So let's use alternative documentation and go a little bit beyond the standard agency and government programs that everybody has to offer. So these are statements, 1099s, P&L statements, etc. And if you compare it to conventional, it's coming in at 6%, very comparable. Very helpful for our self-employed borrowers who may need to use those alternative documentation methods.

And for investment properties as well, once we switch over, rates are at 6.125, finally, PR 6.448. A little bit of change as the last shown. And it's coming in at 6.125 also, finally PR 6.438. So just a hair cheaper there overall than our alt-doc options, but almost identical.

And our DSCR (Debt Service Coverage Ratio) options: these are some of our favorite non-QM options. No employment or income information needed. We send rental property and determine if the rents can cover the expenses, AKA if the property cash flows. That's a number one, which is what we set for all the demos here. With a three-year prepayment penalty, rates come in at 5.999, finally PR 6.307.

And we can do a five-year prepayment penalty there, rates as low as 5.875, finally PR 6.181. And these are some conventional and even our alt-doc options. Amazing for our DSCR. And we can even do DSCR with no prepayment penalty there: 6.125, finally PR 6.448. More in line, but those programs are amazing.

We have a ton of different options here. If you keep scrolling down, go to our page, get a quote for any of our standard options. We're going to go into a deep dive today into some typical requests for commercial. So commercial properties, obviously, not what we're looking at here. We're looking at standard single-family homes for all of our demos here.

Once we switch into the commercial realm, it's quite a bit different, but we have some pre…

So first up here, we need to identify a property. I pulled up LoopNet as a site here. That is for commercial properties. So I've pulled a building. This is a typical request: a small commercial building. This is a little strip mall type of building, retail building, has three units, and it does say it's 100% leased. So this is a typical example of looking to invest. Looking at right here is how they typically list a commercial property, based on the rents. But our loans are typically based on DSCR—a different kind of way to measure immediate rents there.

So let's check out our most common option. Here is our conversion, which makes it pretty simple. There are other commercial options, a little more complex, especially with SBA loan options: extremely high LTVs, but also a lot of extra documentation requirements as they are government loans. This is our typical commercial option. This is full commercial, very simple DSCR commercial.

So, for that exact three-unit retail investment property, we can book to 70% loan to value. And again, that's for that exact property. This does have a standard five-year prepayment penalty, which is declining: 5% year 4%, year two. That is standard for these commercial options.

Some rates here, pretty cool rates: 9.49 rate. That's at discount points and costs that allows us down, which is typical for these commercial loan options. And remember, we're going to base the loan on the DSCR ratio: essentially, can rent cover these expenses, the monthly payment, plus the tax and insurance, etc. Pretty simple loan. And again, a couple of things to look at here.

Again, we had a five-year set, and we did use that 760 estimated FICO. Other than that, standard three-year fixed. A lot of commercial loans are balloons. These are very similar to our DSCR loans, just standard thirty-year fixed loans, just a little bit higher rates, a little bit lower LTVs—a pretty standard DSCR loan here for a commercial property.

Now let's talk about a little bit of a different type of property. These are all gonna be pretty similar quotes, but obviously for very different property types. Commercial does have different options here. This option here is for an industrial building. This would typically be, instead of an investment property where you're looking to get three units and lease it out, this would typically be owner-occupied. It looks like a previous company called Tinson Co was here.

And obviously, they occupied the whole building, and they most likely owned the building themselves or were just renting it as the owner was an investor. So in this example, I'm going to go over our typical request, which is oftentimes we get business owners that want their property for their business. This would be an owner-occupied. So the new tenant would be occupying this for their business. Very different, but we can still use these pretty simple commercial loan options.

This does have a higher price, but it is just a one-unit industrial warehouse type. So in this case, we have an owner-occupied warehouse. We can still go up to 70% loan to value. Obviously, we can do SBA loans and others, so up to much higher LTVs, or sometimes lower rates. But that's on a case approval basis. This is a national option that works for major cities with warehouse options. This does include the standard five-year prepay. Rates are pretty much the same, just a much higher loan amount here, a much higher down payment. So still the same 30% down payment and still all the same setup here.

And the final option here, another typical request, would be an owner-occupied property: some office buildings. The office, again, just in my area, just popped up. Standard small office there in a downtown location, appears just priced a little differently, but it's very similar quote. So here we have office space: still the same setup, 70% loan to value, pretty similar setup, 0.49 rate, discount points, and costs in that same down payment.

So these options are amazing in order to offer our customers combined commercial options. And of course, commercial options. We do have other episodes where we go over our SBA loan options, which is kind of a particular subset with a lot of restrictions. But we can go to higher LTVs a lot of times on specific SBA options. They are beyond full-doc loans—they have different requirements beyond just a standard full-doc loan. Very unique loan types there.

These standard commercial options are the commercial options pretty much in any state. So please reach out to one of our team members if you'd like a full breakdown on any of the options we went over, our standard programs, either non-QM programs or conventional programs.

We'll see everybody back next week with another episode of Daily Rates. Thanks for joining us. Have a great weekend.