For brokers new to the commercial mortgage industry, it might seem like your borrowers have only two options: a bank loan or a hard money loan. However, there are a number of borrowers who qualify for something in between. That’s where small-balance commercial mortgage lenders like APEX Mortgage Corp. come into play. Non-conforming commercial lenders who focus on the entire financial picture, as opposed to just your borrower’s credit score or tax returns, are a great solution for many small business owners.

Here’s how you can tell if you’re working with an in-between borrower:

Credit history:

There are many people seeking small-balance commercial mortgages who don’t meet a bank’s credit requirements. These are often borrowers who have had some credit issues in the past, but have resolved the problem and have seen improvement in their scores. And while they can’t qualify for bank financing, their scores are high enough that a hard money loan might not make sense. That’s when a non-conforming commercial lender is a great option. They’ll listen to your borrower’s story in order to understand their true financial situation.

Income verification or tax issues:

If you’re working with a small business owner who can’t meet the bank’s requirements for income verification or needs a mortgage to pay off tax liens, you’ll need to seek financing elsewhere. However, if the borrower is otherwise strong, a hard money loan won’t make much sense. Lenders like APEX understand this. We don’t use tax return to underwrite our mortgages and we can provide borrower’s with funds to pay off the IRS.

Time is of the essence:

Let’s say you’re working with a borrower who needs a mortgage fast and doesn’t have time to wait for the bank to close. Hard money loans are an option in these scenarios, but your borrower will be paying for speed with a much higher rate than necessary. A small-balance commercial lender like APEX has rates higher than the bank’s, but lower than hard money lenders. You can still get your borrower’s deal funded in the necessary timeframe without having them break the bank to pay for it.

Just because your borrower can’t qualify for a bank loan doesn’t mean hard money is their only option. There are non-conforming lenders like APEX that are willing to listen to your borrower’s story, get a sense of the full financial picture and are able to close the deal fast. Plus, we allow our brokers to charge five point up front, plus two YSP. So, not only will your borrower get a good deal, you’ll get a great commission.

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