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Commercial Mortgages Nationwide

Clopton Capital is a national commercial mortgage broker in the business of matching borrowers involved in multifamily, industrial, commercial, and mixed-use commercial real estate to lenders suited to their needs for asset-backed funding. Needs invariably include purchasing, refinancing, or rehabbing a property. Irrespective of your direction, our commercial mortgage loan officers will connect you to the best commercial loans at the most competitive commercial mortgages rates and easiest loan terms available. We work every day with private investors, small/middle market real estate entities, and family offices everywhere in the US investing through partnerships, trusts, corporations, LLCs, Delaware Corporations, estates, and even as foreign nationals.

Commercial Building Mortgage

What are commercial mortgages?

A commercial mortgage or commercial loan is a mortgage offered in order to make a purchase of property for business purposes, as opposed to a residential mortgage which is issued to a borrower for their own personal residence.

How do commercial mortgages work?

Commercial property mortgages, also known as commercial mortgage loans or commercial real estate loans, are typically used for purchasing real property, such as malls and office buildings. A commercial loan will usually come with shorter-term commitments than a residential mortgage loan.

As someone who may be considering buying a commercial property using one of the commercial loans available from the best commercial mortgage lenders, you’ll need to know that these loans usually come with shorter-term commitments than residential mortgages and the interest rates may be higher and cost over time. Nonetheless, depending on whether you’re looking to resell your property anytime soon or not, this could actually save you money in the long run because it would give you more freedom if an unexpected opportunity arose elsewhere.

Who needs a commercial mortgage loan?

If you need a commercial property loan or a commercial private mortgage, contact our team at Clopton Capital. Clopton Capital  provides different types of commercial property mortgages for commercial property owners.

Common Sources of Commercial Mortgage Financing

There are a number of commercial mortgage providers in the market. Some of the most well-known providers include Wells Fargo, Bank of America, and Chase. These providers offer a wide variety of mortgage products, including fixed-rate mortgages, adjustable-rate mortgages, and bridge loans.

Commercial mortgage programs

There are two main downsides to commercial mortgages. The first is that they’re not ideal for the cash-strapped entrepreneur because you need substantial resources upfront in order to obtain them. The second downside is that these mortgages come with much higher interest rates than residential loans.

Providers of commercial mortgages

Clopton Capital puts you in direct connection with the most trusted and established providers of commercial mortgages for small businesses and large enterprises, giving you everything you need to be successful.

Commercial Mortgage Loan Lenders

It is our goal to give our clients on-demand access to the most competitive commercial mortgage lenders and commercial real estate loans in the country. Our multi-billion dollars of closed deals in commercial real estate loans over 10 years is evidence enough of our strength in developing commercial mortgage lender relationships. Moreover, right through the process from underwriting to closing the deal, you will always be kept abreast of developments on every aspect of your transaction in keeping with the heralded Clopton policy of full transparency. And no matter if your application is big or small you’re always on the receiving end of our undivided attention to get your funding in place as quickly as possible.

We Offer Commercial Mortgages Nationwide

Work with the top commercial mortgage broker in the industry offering highly competitive financing for all income producing real estate investments and assets nationwide. Whether you are looking to acquire, improve, cash out, or refinance, our small business lender network will have the most competitive rates and terms.

Program Details

Program Details

Most of our mortgages are in the $1 – 50 million range, however can go higher or lower depending on the deal.

Most commercial assets are going to max out at 75% LTV, and multifamily at 80% LTV on a first mortgage.

Typical fixed period are from 5 to 10 years, however our lenders offer longer and shorter fixed periods.

Our products offer anything up to a 30 year amortization, with the ability to build interest only periods into the front of the term. The lower the LTV, the more interest only we can get with full term interest only starting at 65% ltv.

The mortgages we offer or usually non-recourse structures with carve outs, however recourse can be required for certain property types and scenarios.

Our loan products can be used for a variety of purposes, the lenders we work with are highly flexible and can tailor a loan to any specific needs.

We will look at funding all commercial property types, including multifamily, office, Retail, industrial, hotels, self storage, mixed use, mobile home parks, etc.

The types Of Commercial Mortgages we do

Commercial Mortgage Loan Challenges: real client case studies resolved by us

Here are three different case studies of real clients we’ve helped at Clopton Capital

LLC Borrower Looking to Purchase Office Building

A borrower structured in an LLC wanted to purchase an office building in Fort Lauderdale for $9.5 million that was part of an association with 3 other buildings. The borrower planned to use 3rd party management on a non-owner occupied basis, thus buying the building purely as an investment. We structured a 75% loan-to-value non-recourse loan (i.e. a 25% down payment), with a 10-year very competitive rate, 2 years of interest only on the front-end that transitions to a 30-year amortization in year-3. Our client was satisfied with this arrangement as a way to maximize its cash flow and ROI on the investment with the added benefit of zero personal recourse.

Partnership Borrower with Apartment Building in Kentucky

A borrower in a partnership structure was facing a loan maturing with a balloon payment attached to an apartment building in KY. The investor wanted to contain closing costs and was uncertain what to do with the property. Its goal was a mortgage with a fixed rate but did not want any prepayment on the loan in case the partners decided to sell and repay their debt. We found a lender on our exclusive long-term relationship list able to arrange a commercial mortgage with a 5-year fixed rate, 25-year amortization that did not have any prepayment at all starting on day-1. This way our client was protected against rate increases for 5 years with enough latitude over that time-period to figure out if it wanted to sell or keep the property.

Corporation Borrower Seeking Cash-Out Refinance

A corporation borrower with a portfolio of retail centers in Indiana approached us to refinance and cash out on all of the properties. The properties were located across western Indiana and were comprised mainly of grocery-anchored shopping centers. We induced one of our mainstay lenders to structure a portfolio mortgage for $16.5 million across all the properties, that transferred over $6 million into the borrowers pocket, maintained a very competitive 10 year fixed rate and settled on a 30-year amortization, non-recourse.

Mortgages Interest Rates

Commercial Mortgages Interest Rates

Commercial mortgage interest rates are the interest rates that banks charge on commercial mortgages. They are usually a little bit higher than the interest rates that they charge on residential mortgages, because the risk of default is a little bit higher for commercial development mortgages. Banks charge higher interest rates because commercial mortgages are riskier. In addition, there is a higher cost of borrowing as compared with residential mortgage loans because the process is more labour intensive and time consuming for banks.

In order to determine commercial mortgage interest rates, lenders look at many different factors. The total loan amount is one of these factors. Lenders tend to charge lower interest rates for larger loans with a long repayment period since it reduces risk and increases return on investment. They also consider the property type that the borrower wants to buy. Some types of properties have a better ability to generate cash flows which makes them less risky than others. Banks will generally charge lower interest rates for property types with better collateral value such as industrial properties rather than office spaces.

What is the current interest rate for commercial mortgages?

The current interest rates for commercial mortgages for new businesses and established enterprises range from 3.5% to 5%. This is because the economy has been improving, and the Federal Reserve has been gradually increasing the federal funds rate.

Commercial Mortgages Calculator

Want a general range of the kinds of commercial mortgage terms you can expect? Use our commercial mortgage calculator here.

Requirements to Apply for a Commercial Mortgage Loan

Commercial mortgage loans are required to meet the lending requirements of banks. Ideally, these loans should be free of any personal credit history in order to make the process more accessible to all potential borrowers. The lending company is also in charge of estimating how much money would be repaid in 30 years at 10% with 20% down payment. This estimation can then be used to determine whether or not the borrower is eligible for financing.

The Commercial Mortgage Loan Application Process

The commercial mortgage loan application process can be difficult to understand. It’s important to have all of your documentation in order and to know what the lender is looking for, which are all things our commercial mortgage brokers can help with.

Some things that you will need to provide when applying for a commercial mortgage loan are:

  • A completed application
  • Proof of identity (driver’s license, passport, etc.)
  • Proof of income (pay stubs, W2s, bank statements, etc.)
  • List of all debts and assets
  • Completed credit application
  • Property information (address, legal description, etc.)
  • Photos of the property

How to qualify for a commercial mortgage?

The basic essentials when qualifying for a commercial mortgage include:

  • Current employment with a company or business that has monthly income.
  • Establishing the desired property as an asset to add equity (even if it doesn’t generate profit).
  • The property owner must have enough money in their account for their share of investment and taxes.

Commercial Mortgages FAQ

Here are some commonly asked questions about commercial mortgages.

Are commercial mortgages regulated by the FCA?

No, commercial mortgages are not regulated by the FCA.

Are commercial mortgages assumable?

Yes, commercial mortgages are assumable. This means that the new owner of a property with a commercial mortgage can take on the mortgage payments and assume all of the rights and responsibilities of the previous owner.

Who does commercial mortgages?

Commercial mortgages are offered by a variety of lenders, including banks, credit unions, and mortgage companies.

How much is a downpayment on a commercial mortgage?

Typically for a commercial mortgage you can expect to put up anywhere from 20% to 35%. This, of course, depends on your credit and other personal factors. You can usually find out more by asking a lender.

What are the requirements for a commercial mortgage?

  • Must be 18 or older
  • Show ID (driver’s license, state ID or passport)
  • Provide documents to demonstrate income and assets
  • Work with a real estate agent and/or mortgage broker who can help you find a loan program that meets your needs and the requirements of the lender.

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