In this article, we have discussed the best commercial truerate services, how commercial loan truerate services work, and the pros and cons.
A commercial loan true rate service is essentially a platform that links borrowers with lenders, much like an online dating service for business loans.
To use it, you complete a brief form on the website outlining your loan needs and platforms. Then, the service matches you with lenders who are a good fit and gives you loan offers.
There are different types of these services. Some focus on specific types of businesses, like small companies or startups. Others offer a wide range of financial options, including loans, investments, and more.
- What is Commercial Loan Truerate Services?
- How Does Commercial Loan Truerate Service Work?
- Pros and Cons
- Loan Services Covered By Truerate Loans Services
- Wrap Up
What is Commercial Loan Truerate Services?
Commercial loan True Rate services are like helpers for businesses to find out the most up-to-date interest rates for their loans. They can offer online tools, databases, or expert advice to assist businesses in comparing and applying for loans at the best available rates.
The interest rate for a commercial loan is typically influenced by factors such as the borrower’s creditworthiness, the collateral they can provide, and how long they want to borrow the money.
If you need a loan for your business, TrueRate’s services can help. They save you time and find the right lender after analyzing your business. This lender will offer you a good rate.
How Does Commercial Loan Truerate Service Work?
Many businesses secure commercial loans to cover short-term expenses like operating costs or equipment purchases. Sometimes, these loans are also used for essential needs, such as covering payroll or buying supplies for production.
Businesses often have to offer collateral for these loans, typically in the form of property, plants, or equipment. If the borrower can’t repay or goes bankrupt, the bank may take this collateral.
In some cases, commercial loans can be backed by future receivables’ cash flows. For instance, commercial real estate mortgages are a type of commercial loan.
Pros and Cons
- Knowing the exact interest rates
- Comparing loan offers more easily
- Getting help from experts
- Saving time and money
- Making things fit your needs and being flexible
- Possible charges and expenses
- No assurance of getting the loan
- Limited in what it can do
- Relying on how good the service is
Loan Services Covered By Truerate Loans Services
HUD and FHA Loan Service
FHA or HUD loans are government-supported, making them less risky for purchasing or renovating commercial properties. They offer more favorable terms, like lower interest rates, extended repayment periods, and flexible credit requirements compared to traditional commercial real estate loans.
To be eligible for these loans, properties must meet specific criteria. For example, rental properties should have at least five units with up-to-date kitchens and bathrooms. Essential repairs must be completed before closing, and the loan term cannot exceed 35 years or 75% of the property’s improvement lifespan.
Qualified borrowers can access loans ranging from $2 million to more than $100 million, benefiting from competitive commercial loan rates and high loan-to-cost proceeds in the industry.
Mezzanine Debt Loan Service
Truerate’s Mezzanine Debt Financing service is for real estate investors who need more money for their projects. When traditional low-risk options aren’t enough, this higher-risk financing is backed by the borrower’s assets and can also include equity.
Mezzanine debt commercial loan plans offer customized terms to match your specific needs, providing a more personalized approach to securing a commercial loan.
With mezzanine financing, you can finance part of the property’s purchase price, reducing the need for more equity and spreading the risk. It’s a cost-effective option because the interest is tax-deductible and gives lenders higher returns, usually between 12% and 20% per year.
Freddie Mac Real Estate Loan Service
TrueRate’s Freddie Mac loan service is great for buying or refinancing various property types, like apartments, student housing, market-rate properties, and affordable housing.
Freddie Mac, a major government-sponsored enterprise, offers competitive commercial loans with low down payments and flexible terms. Typically, you can finalize a Freddie Mac loan in 45 to 90 days.
Loan terms include floating and fixed-rate options with different durations. The loan-to-value (LTV) ratio can go up to 80%, with a minimum debt service coverage ratio (DSCR) for market-rate properties.
Freddie Mac requires that half of its loans benefit people with lower incomes. This opens up real estate investment opportunities with lower-cost loans for eligible borrowers.
Hard Money Commercial Loan Service
Truerate’s Hard Money commercial loan service provides a fast and dependable way for real estate investors to secure funding for their projects. With a streamlined process and flexible repayment terms, it’s an excellent choice for quick property purchases or flips.
In contrast to traditional commercial loans, Truerate’s service requires much less paperwork, making approval easier. You only need proof of income, a repayment plan, property value details, and deal fundamentals.
Additionally, borrowers must make a down payment of 30% to 40% of the commercial property’s value as per the loan agreement.
Bridge Loan Service
The TrueRate bridge loan service speeds up buying a new property and selling your current one without waiting for traditional financing.
For real estate investors or those needing a quick close, bridge loans allow you to buy a new property without waiting to sell the old one. These loans are usually secured by the existing property and have higher interest rates due to the risk.
TrueRate bridge loans typically last from six months to two years and are suitable for various situations, from buying a new property to completing a commercial project.
Borrowers are assessed based on the property’s value after repairs, with loan amounts usually around 70% to 80%, floating interest rates between 6% and 11%, and loan-to-cost (LTC) of up to 90%.
Bridge loans are ideal for investors who need quick property purchases or capital. These loans can also assist struggling businesses with short-term needs.
With flexible terms, rapid processing, and fewer documentation requirements, TrueRate’s bridge loan service is an excellent solution for various investors.
Fannie Mae Loan Service
Truerate provides Fannie Mae loan financing services for multifamily property investments. If you’re a financially strong borrower with good collateral, you can take advantage of Fannie Mae’s competitive fixed and floating-rate financing.
Loan terms are available for 5, 7, 10, and 12 years, depending on the loan product channel. When buying a home, you can borrow up to 80%, and for cash-out refinancing, it’s 75%. This commercial loan service also locks in your interest rate, so you won’t have to worry about it changing.
There are three execution types available:
- DUS Large loan
- DUS Conventional loan
- DUS Small loan
The Fannie Mae loan program is suitable for various property types, including senior housing, student housing, manufactured housing, and more. It’s a good choice for those seeking lower-cost financing, offering a reachable loan-to-value (LTV) ratio of up to 80%.
Truerate’s Commercial Loan services are here to help businesses save both time and money. They achieve this by locating the most suitable loan options with the lowest interest rates.
Through collaborations with multiple lenders and the use of sophisticated data analysis, Truerate services expand businesses’ loan possibilities and provide tailored advice and recommendations.
TrueRate is a commercial loan platform that helps businesses secure competitive loans by evaluating lenders and providing tailored options.
The primary types of commercial real estate financing include commercial mortgages, construction loans, and bridge loans. Commercial real estate lenders fall into two main categories: cash flow lenders and equity lenders.
The loan-to-value (LTV) ratio can differ among lenders. For housing loans, it’s often higher, but for commercial property loans, lenders typically provide up to 55% of the property’s value.