Businesses operating in leased space are throwing money away each month paying rent that increases from year to year during the term of the lease. Leasing commercial space also comes with the uncertainty of not knowing if the owner of the building will renew the tenancy when the lease expires. MortgageDepot offers business owners the chance to escape from ever-increasing rent payments by financing the purchase of a commercial condominium.
Advantages of owning a commercial condo
Our commercial condo mortgage brokers work with business owners to find a lender offering the best loan terms. This allows businesses to take full advantage of the switch to ownership of a commercial condo. Benefits a business can achieve by purchasing with mortgage financing include:
- Low initial cash outlay for a down payment
- Fixed monthly mortgage payments offer stability
- Guaranteed long-term occupancy
- Real estate ownership adds value to a business
Some of the many uses for which commercial condominiums are suitable include the following:
- Professional and medical offices
- Warehousing and storage
- Retail establishments
- Light manufacturing
The only limits on how a commercial condo can be utilized are local zoning laws and the rules and regulations of the condominium owners association in charge of the building or complex.
Financing the purchase of a commercial condo
Financing the purchase or refinancing of a commercial condo is accomplished through a loan secured by a mortgage, which is a lien on the property. Depending on a borrower’s preference, loans are available with payments amortized from three years to 30 years.
For businesses in need of lower monthly payments than an amortized loan would offer, we can help them to secure a balloon loan. These loans offer lower monthly payments by calculating them as though the loan were being repaid over 25 to 30 years, but the loan is actually due at the end of five to seven years.
We offer SBA 504 loans
The mortgage loan originators at MortgageDepot can assist qualified borrowers with financing offered through the U.S. Small Business Administration. Its SBA 504 loan program allows borrowers to finance up to 90 percent of the cost of a commercial condominium. The program is also available to refinance properties with a maximum loan to value ratio of 85 percent.
Find out how MortgageDepot can help
Whether a business is borrowing to acquire or to refinance a commercial condominium, MortgageDepot has a suitable program to make it happen.