Commercial Real Estate Financing

With over 30 years of commercial banking experience, Atlantic Funding will help you find, choose and close the right commercial financing for commercial real estate you own or are buying.

With our local, regional and national network of Conventional, Lite Documentation, Stated Income / No-Doc and Hard Money funding sources, including traditional banks, investment funds and private individuals, we commit to finding you the capital; structured to your needs and at the best commercial loan rates and terms available.
 

Our style is professional yet personal; we will often travel distances to meet with you and personally "walk the property."  Our terms are open with only one surprise -  we think you'll find our services more competitive than a traditional commercial mortgage broker.

Below we have summarized some key differences between the three Conventional, Stated Income / No-Doc and Hard Money programs.  Please click on the links for more information about each.  Of course, please call us 1-800-503-1972 or contact us online

Conventional Financing

Typically, conventional financing is provided through local financial institutions, insurance and pension funds and wholesale houses.  Interest rates are quoted upon commitment and are governed primarily by market conditions.  Link to Federal Reserve select rates

Common characteristics of a conventional loan are:

• Two years documentation of property and owner income at levels sufficient to satisfy the coverage ratio

• Loan amount may be limited to 80% of appraised value

• Lending institution may introduce covenants coupled with inducements and incentives

▲Due to the more conservative credit standards, conventional loans offer the most competitive rates, terms and conditions. If full documentation is available to satisfy underwriting standards, we advise clients to take advantage of the preferred rates and extended terms available through a conventional program.

Lite Documentation

Similar to conventional financing, this program is limited to investment (not owner occupied) property.  Underwriting and credit approval is based on the historical and documented cash flow from the property tenants.  If the property supports itself , underwriting places less emphasis on the owner's personal income and assets

Stated

Over 70% of US businesses don't qualify for traditional bank financing.  If the property makes sense and the owner's credit makes sense, a Stated program is a viable alternative without the higher expense and shorter terms offered through hard money programs.  link to program information

Common characteristics of a Stated Loan are:

• The business or property owner is unable to provide two years documentation of property and owner income.

• The owner's FICO credit score may be lower than required with conventional financing

• The property category or characteristics do not qualify for conventional financing.

• Application is based on i) Form 1003, ii) Tri-Merge credit report and iii) Commercial Appraisal

▲Due to the increased flexibility in underwriting and property standards, stated loans offer rates, terms and conditions at a premium over conventional financing.  If income  documentation or FICO scores don't qualify for conventional financing, we advise clients with to take advantage of the flexibility and extended terms available through a stated program.  MORE INFO

Private / Hard Money

Hard money is a recommended option when a property owner, with increased equity but a lower credit score, needs quick funding to take advantage of a business opportunity.

The loan amount is based on the property value.  Value is determined more by cash flow and less by comparable property sales.

Loan amounts are typically 60% of the value.

The loan balance is often due in full after a one to three year period.

The property and owner will a) demonstrate the ability to meet the monthly payments and b) have a plan in place to qualify for refinancing at the end of the initial period.  Often that could mean allowing time for a renovated building to post historical rent revenues, etc.