For borrowers looking to obtain small-balance commercial mortgages, obtaining a bank loan is often impossible. As a commercial mortgage broker, you need to understand these borrowers and the common obstacles they face. You also need to know how to help them find the financing they need. For borrowers unable to qualify for bank financing, a non-conforming, small-balance commercial lender can be the answer.
Here are some common problems these lenders have solved for their borrowers:
The most common reason borrowers aren’t able to secure bank financing is because they aren’t able to prove their income, especially those who are self-employed. While banks use tax returns to underwrite deals, most small-balance commercial lenders take other financial documents into account when determining your borrower’s request.
Past credit issues:
Borrowers with lower credit scores because of financial bumps they encountered in the past generally have a tough time obtaining a bank loan. It’s crucial for brokers to connect with a small-balance commercial lender willing to listen to borrowers’ stories and take the time to understand their financial situation. This common-sense approach will allow your borrowers a better chance at obtaining the funds they require.
If your commercial borrower owes money to the IRS, they won’t be able to obtain bank financing. However, many small-balance commercial lenders will work with your borrower to pay off many types of back taxes. Watch our previous video about how APEX provided the mortgage that solved a buyer’s tax problem.
While your borrower may not be able to secure a bank loan, there are non-conforming commercial mortgage lenders that can help solve their problems. As a commercial broker, it’s important to get to know these lenders and develop business partnerships with them in order to solve the most common problems of small-balance commercial borrowers. Whether your borrower can’t verify their income through tax returns, has past credit problems or needs to pay off tax liens, small-balance commercial mortgage lenders can help.