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Advantages of Small-Balance Commercial Mortgages

If you’re a broker who’s interested in closing more loans and earning more income, closing small-balance commercial mortgages is a great opportunity. This underserved niche allows brokers to close more mortgages in a shorter timeframe while earning more on each deal, and the process is simple.

Here are some of the advantages of closing small-balance commercial mortgages:

Low-doc submissions:

Generally, sending a mortgage request to a small-balance commercial lender is simple. These lenders tend to require less documentation to evaluate and underwriter your borrowers’ deals. For example, when you submit a deal to APEX Mortgage Corp., all you need to send is a completed 1003 or commercial mortgage application, a credit report that includes tradelines and scores a summary of the deal and any current photos of the subject property that you have.

Flexible underwriting guidelines:

Because borrowers who require small-balance commercial mortgages are often non-bankable, most non-conforming lenders have underwriting guidelines which reflect that. These lenders understand that borrowers are more than just a credit score or a set of circumstances, and they’re willing to listen to your borrowers’ stories.

Quicker closings:

Bank loans and mortgages from other traditional lending sources can take months to close. If you’re working with a borrower who needs funds fast to pay off a ballooning commercial mortgage or to purchase a property in a short time-frame, that’s going to be a problem. Non-conforming commercial lenders can generally close loans much more quickly than banks. For example, APEX loans typically close 2-3 weeks from the time your borrower receives a commitment letter.

Higher commissions:

Because of stricter regulations, traditional lenders typically cap the fees that brokers can charge at lower rates. However, if you’re working with a non-conforming commercial lender, you’ll be able to earn more. If you choose to work with APEX, you can earn up to 5 points, plus 2 YSP.

Small-balance commercial mortgages are an easy way to increase your business as well as your income. With less paperwork required and flexible underwriting guidelines, these loans are a simple way to expand your product offerings. Additionally, these loans close quickly and you can charge more for your services. Small-balance commercial mortgages are a no-brainer for any broker looking to grow their business.

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