Commercial Property Mixed-Use Loans
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What’s a mixed-use loan, huh? In commercial real estate, a mixed-use loan defines land for two or three uses. A common example is an apartment complex with a grocery store on the ground floor or a commercial bakery with a retail store. Mixed-use property loans shall extend to banks, private lenders, and non-bank lenders. Purchase and refinancing of mortgages for stabilized mixed-use properties in the metropolitan core would lead to up to 85 percent of LTV.
There are a variety of types of mixed-use home loans available. Common uses for these types of loans are as follows:
- Purchase of mixed-use land
- Refinancing to get capital to stabilize and reposition the property on the market
- Cost and length of refinancing to pay off the old mortgage
- PUD Funding
- Rehabilitation and/or rehabilitation of the property
- Build a house of mixed-use
Forms of mixed-use loan
Mixed-use loans from Commercial Real Estate Loan Pros of Fort Lauderdale can come in a number of forms. Government-backed mortgages provided by the SBA or USDA are the most common types of mixed-use mortgage loans. These mixed-use loans provide for commercial mixed-use loans as well as short-term loans to investors.
The most common types of mixed-use mortgage financing are government-backed loans, commercial loans, and short-term loans.
Government-backed mixed-use loans include SBA 7(a), SBA 504, and USDA Business Development. These loans are set, with terms spanning from 10 to 30 years. Government-backed loans have interest rates ranging from 4.5% to 10% and typically require mixed-use buildings to comprise at least 51% of the market. In addition, SBA 504 loans will support renovation and rehabilitation. Commercial mixed-use loans are standard loans issued by both traditional and banks, as well as by other lenders. Commercial mixed-use loans have repayment periods varying from 15 to 30 years and interest rates ranging from 5% to 7%. Typically, mixed-use buildings are supposed to remain in a good condition before they are financed. However, these loans do not allow the owner to lease the building. Mixed-use short-term loans come in various types, including commercial bridge loans and private money loans, such as hard money loans. These short-term loans have terms varying from six months to six years and interest rates ranging from 7% to 16%. Mid-use short-term loans are commonly used for the following reasons: Business owners that utilize short-term mixed-use property loans usually refinance a permanent loan after the term has ended. Mixed-use commercial loans are loans issued by banks and other lenders and not backed by the federal government. These mixed-use commercial loans are typically portfolio loans or balance-sheet loans. Generally, the rates, terms, and specifications for industrial mixed-use loans will remain the same.
Government-supported loans
Commercial Loans
Short term Loans
Commercial Mixed-use Loans
Terms of Borrowing, Prices & Credentials
The standard loan amount for a mixed-use commercial real estate loan is typically between $500,000 and $25 million, with a gross loan-to-value (LTV) ratio of 75%. This ensures that you should expect to invest at least 25% of your mixed-use house’s purchase price as a down payment. Terms range from 15 to 30 years, with acceptance times from 30 to 45 days.
Normal interest rates on a commercial mixed-use loan are typically between 5% and 7%. These interest rates can be fixed as well as variable. For variable interest rates, the rates are typically set on the basis of the London Interbank Offered Term (LIBOR) six-month interest rate with an average cap of between 6% and 7% above the initial interest rate.
Who Mixed-use Property Loans Are Right For
Business operators and real estate investors are most inclined to take advantage of mixed-use loans. Company managers will typically purchase a mixed-use house and continue in a rental unit while operating out of a corporation premises. Real estate investors would typically invest in a mixed-use building to act as tenants for residential and commercial tenants.
What’s the difference between a corporate loan and a residential loan?
Industrial loans and residential loans operate in the same way. The conditions for certificates are, however, very general. A commercial loan is a loan taken by a company and thus the classification relies on the creditworthiness of the corporation. Residential loans shall be focused entirely on the credits of the individual applicant.
Bottom Line
Mixed-use bonds are a good means of financing mixed-use buildings. Usually, these mixed-use buildings have different units for a number of purposes, such as residential, agricultural, grocery, cultural or institutional. Mixed-use loans can be either short-term or permanent. We at Commercial Real Estate Loan Pros of Fort Lauderdale specialize in Mixed-Use loans.
We offer SBA 7(a) loans, SBA 504 loans, and USDA Business and Sector loans if you are looking for financing and are uncertain which funding program would be best for you. Our specialized loan team can assist you in selecting a loan plan that best matches your needs. Contact the loan specialist to initiate the application process.
Finding a commercial loan, the correct fit
Irrespective of the financial situation of our clients, we remain dedicated to finding the best commercial loan for them, with attractive conditions and ample financing to achieve their company goals. Our Competent Account Executives are committed to serving our clients and providing the best available method of securing a business or industrial loan.
Cash Flow Financing Loan
The Cash Flow Financing Loan relies on the financial condition, organizational strength, and overall management strength of the company as assessed by the lender. This type of loan can be structured in a revolving loan format, depending on the overall evaluation of the asset or the maturity of the loan.
Stretch Asset-Based Loans and Hybrids
Stretch asset-based loans and combinations are some mixed lending systems. Typically, these loans rely on internal cash flow analyzes and liquid assets of the business.
Schedule a Consultation
For more info, please visit Commercial Real Estate Loan Pros of Fort Lauderdale Professionals today or call us to discuss which of the many commercial loan choices we have are ideally suited to your business needs.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.
We service all counties and cities throughout South Florida. However, if you need any of these services in other cities throughout the state of Florida, please contact us. See what services we offer below: