Commercial Property Mixed-Use Loans
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What’s a mixed-use loan? In commercial real estate, a mixed-use loan identifies properties of two or more purposes. A typical example of this is an apartment building with a retail store on the ground floor or a commercial bakery with a retail store. Mixed-use land loans are applicable to governments, private lenders, and non-bank lenders. Purchase and refinancing of mortgages for stabilized mixed-use assets in the metropolitan center will be up to 85 percent of LTV.
There are several forms of mixed-use home loans available. Popular uses for these forms of loans are as follows:
- Purchase of a mixed-use property
- Refinance to get cash to stabilize and reposition the land on the market
- Price and period refinancing to pay off the former mortgage
- Financing of PUD
- Rehabilitation and/or remodeling of the land
- Develop a mixed-use house
Forms of mixed-use loan
Mixed-use loans from Commercial Real Estate Loan Pros of Miami may come in a variety of ways. A government-backed mortgage issued by the SBA or USDA is the most popular form of a mixed-use property loan. Such mixed-use loans provide industrial mixed-use loans as well as short-term loans to borrowers.
The most popular forms of mixed-use mortgage loans are government-backed loans, industrial loans, and short-term loans.
Government-backed mixed-use loans include SBA 7(a), SBA 504, and USDA Enterprise Growth loans. These loans are fixed, with periods varying from 10 to 30 years. Government-backed loans have interest rates varying from 4.5 percent to 10 percent and usually, involve mixed-use buildings to occupy at least 51 percent of the sector. In addition, SBA 504 loans will fund building and reconstruction. Industrial mixed-use loans are regular loans offered by conventional and banks as well as by other lenders. Industrial mixed-use loans have maturity periods varying from 15 to 30 years and interest rates ranging from 5% to 7%. Usually, they expect mixed-use projects to be in decent shape until they are funded. However, these loans do not cause the house to be leased by the owner. Short-term mixed-use loans come in multiple forms which include industrial bridge loans and private money loans, such as hard money loans. These short-term loans have periods varying from six months to six years and interest rates ranging from 7% to 16%. Mid-use short-term loans are usually used for the following reasons: Company owners who utilize short-term mixed-use land loans typically refinance a permanent loan after the term has expired.
Government-supported lending
Commercial Loans
Short term Loans
Commercial Mixed-use Loans
Mixed-use industrial loans are loans provided by banks and other lenders and not guaranteed by the federal government. These industrial mixed-use loans are usually portfolio loans or balance-sheet loans. Generally, the costs, conditions, and requirements for commercial mixed-use loans would be identical.
Loan Terms, Rates & Qualifications
The regular loan volume for a mixed-use commercial real estate loan is usually between $500,000 and $25 million with a gross loan-to-value (LTV) ratio of 75%. This means that you can plan to spend at least 25% of the selling price of your mixed-use house as a down payment. Terms vary from 15 to 30 years, with approval periods of 30 to 45 days.
Standard interest rates on a commercial mixed-use loan are usually between 5% and 7%. These interest rates may be set as well as variable. For floating interest prices, the rates are usually set on the basis of the London Interbank Offered Period (LIBOR) six-month rate with an overall limit of 6% to 7% over the original interest rate.
Who Mixed-use Property Loans Are Right For
Company owners and real estate developers are more likely to use mixed-use loans. Company owners will usually buy a mixed-use house and remain in a residential unit when working out of business premises. Real estate developers will usually invest in a mixed-use building to serve as renters for residential and industrial tenants.
What’s the gap between a business loan and a residential loan?
Industrial loans and residential loans work in the same manner. However, the criteria for certificates are very common. A commercial loan is a loan taken by a company, and thus the qualification is dependent on the creditworthiness of the business. Residential loans shall be based exclusively on the credentials of the particular borrower.
Bottom Line
Mixed-use loans are a smart way to support mixed-use buildings. Typically, these mixed-use structures have separate units for different reasons, such as residential, business, retail, cultural or institutional. Mixed-use loans can be either short-term or permanent.
We give SBA 7(a) loans, SBA 504 loans, and USDA Company and Industry loans, if you are searching for funding and are unsure which financing program will be better for your purposes. Our specialized loan workers will assist you in choosing the lending package that better fits your needs. Contact the loan professional to launch the application phase.
Finding a commercial loan, the correct fit
Irrespective of the financial condition of our customers, we are committed to seeking the right commercial loan for them, with attractive terms and enough funding to meet their company objectives. Our professional Account Executives are dedicated to helping our customers and offering the strongest way to obtain a reasonable Commercial or Industrial Loan.
Cash Flow Financing Loan
The cash flow finance loan is focused on the financial status, operational strength, and overall management strength of the business as measured by the investor. This sort of loan can be focused on a revolving loan format, depending on the total appraisal of the asset or the maturity of the loan.
Stretch Asset-Based Loans and Hybrids
Stretch asset-based loans and hybrids are debt arrangements with several combinations. Usually, these loans are focused on existing cash flow analyzes and the company’s current assets.
Schedule a Consultation
For further details, please visit Commercial Real Estate Loan Pros of Miami today or call us to explore which of the numerous commercial loan options we have are better tailored to your business needs.
There are so many areas or regions where we offer these services with most of them being cities.
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