Commercial Underwriting Guidelines
Commercial Financing is underwritten on a case by case basis. Every loan application is unique and evaluated on its own merits, but
there are a few common criteria lenders look for in commercial loan packages.
Commercial Lending Ratios
Most of real estate lending can be boiled down to the results of three ratios:
Commercial Loan-To-Value Ratios
The loan-to-value (LTV) ratio is probably the most important of the 3 underwriting ratios
Commercial Debt Ratios
When analyzing the personal budget of a borrower, lenders use two different debt ratios to determine if the borrower can afford his
obligations. These two debt ratios are:
Commercial Debt Service Ratio
The most important ratio to understand when making income property loans is the debt service coverage ratio. It is defined as:
Commercial Property Types
Listed below is a partial list of properties that require commercial financing.
Questions to Ask Yourself
Are you and your business credit worthy?
Commercial Loan Checklist
The following list will help you identify the types of information a banker will need to make an informed decision about your business.
|
