If you’re obtaining a decent commercial property, and not have the necessary credit scores, a combination of credit restoration and a commercial hard money loan maybe an option for your real estate transaction.
Poor to Fair Credit
What is the purpose of considering a commercial hard loan? Is it because of your credit score or is it because of the type of property that you are purchasing?
If the reason you’re selecting a commercial hard money loan is your personal credit then I would suggest a short term commercial hard money loan commonly known as a commercial hard money bridge, this strategy will allow you time to restore your personal credit and exit out of your commercial hard money and save money by refinancing into a conforming commercial real estate loan
If the reason you’re a selecting a commercial hard money loan for property type that is non-conforming with the banks then I would suggest and alternative commercial hard money loan which basically means that you are selecting an alternative to a confirming commercial loan because the property type is not acceptable with your local banks.
The interest-rate on that type of loan aka soft commercial hard money is slightly higher than a conforming commercial real estate loan with your local bank.
Usually, conforming lenders require a minimum of 680 or better for decent rate and terms on a commercial real estate loan. If your credit score is less than 680 and your in a commercial hard money loan it is very simple to invest into a good credit restoration system, refinance out of your commercial hard money and save thousands of dollars a month by refinancing into a conforming commercial real estate loan.
Pre Payment Penalty
If you’re thinking short term on your commercial hard money loan and you have an exit strategy which is credit restoration and your new conforming commercial refinance, a prepayment penalty is unnecessary for your commercial hard money, there are several commercial hard money programs that do not have a pre-payment penalty.
We understand all kinds of business and real estate investment situations. We work closely with business owners and real estate investors. if you decide to obtain a commercial hard money loan for your commercial real estate property, we suggest that you get referred to a commercial hard money lender by friends or family or by your local retail bank
For more information on how we can help you with your personal credit or commercial hard money in Naples FL, Marco Island, Bonita Springs, Estero and Fort Myers FL please fill out the online contact form about your concerns or give us a call at 855.477-9007. Read what our valued clients have to say about First Pro Capital and Credit Consulting Professionals on our Testimonials page.