TRUSTCO

Serving Central Indiana - North Texas Market
Commercial Mortgage Loan
A Commercial mortgage is a mortgage loan secured by commercial property, such as an office building, shopping center,
industrial warehouse, or apartment complex.
A Commercial "hard money loan", terms are based mainly on the value of the property
being used as collateral.
​

Commercial Mortgage Loan
Commercial mortgages are structured to meet the needs of the borrower and the lender. They are usually used to
purchase and/or renovate owner occupied commercial property. An owner occupied commercial property is
generally considered to be a property where the business owner occupies at least 51% of the building.
Available for 1st mortgages, 2nd mortgages and Refinance.
​
Commercial mortgages usually require extensive underwriting and due diligence prior to closing.
The lender's underwriting process may include financial review of the company, the owners, and the property, as well as the review of various third party reports.
​
​
A Commercial Loan primarily used in real estate transactions and is usually considered a loan of "last resort" A hard money loan, its terms are based mainly on the value of the property being used as collateral, not on the creditworthiness of the borrower. Traditional lenders, such as banks, do not make hard money loans, hard money lenders are often private individuals or companies that see value in this type of potentially risky venture.
The cost of a hard money loan to the borrower is typically higher compared to financing available through banks or government lending programs, reflecting the higher risk that the lender is taking by offering the financing. However, the increased expense is a trade off for faster access to capital, a less stringent approval process, and potential flexibility in the repayment schedule.
​
​
​
​