For brokers, one of the most important factors to consider when choosing a commercial mortgage lender is their flexibility when it comes to getting deals done. And while small-balance commercial lenders are generally much more flexible than banks and other traditional lenders, many cannot provide borrowers with a particular type of financing solution – the blanket mortgage.
What is a blanket mortgage?
Simply put, a blanket mortgage is a mortgage that covers more than one property.
When does a blanket mortgage make sense for your borrower?
The most common scenario APEX sees in terms of blanket mortgages is a borrower refinancing one of their commercial properties to purchase a second property. Depending on the value of the commercial property your borrower already owns, this allows the borrower to bring less of a down payment to closing or, in some cases, funds 100% of the purchase and even closing costs.
Maybe your borrower currently has a mortgage on two commercial properties and they’re looking to refinance both to simplify their monthly bills. Or, perhaps your borrower has two commercial mortgages that are ballooning around the same time. These are also examples of scenarios where a blanket mortgage could be the right fit for your commercial borrower.
What do I need to provide the commercial mortgage lender?
As with any commercial mortgage scenario you submit, you should speak with the lender to find out what they’ll need to review the scenario. For example, if you’re sending a deal to APEX, we need a completed 1003 or application, a recent credit report with scores and tradelines, a summary of the deal and, if possible, recent exterior and interior photos for each property to begin reviewing the deal.
For some commercial borrowers, a blanket mortgage is a great solution. Whether they’re looking to tap into a commercial property they already own to finance a purchase or simply consolidate multiple mortgages, a blanket mortgage might make the most sense. If you think this type of mortgage could be the right fit for your borrower, give APEX a call to learn more about how we can help.