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Advantages of Closing Small-Balance Commercial Mortgages

Commercial Mortgage
Posted on 
April 26, 2016

Whether you’re a residential broker or a commercial broker, expanding into the small-balance commercial mortgage niche is a smart move. This market continues to develop and grow, meaning more opportunity for brokers and borrowers alike.

Here are the main advantages of closing small-balance commercial mortgages:

It’s an under-served market.

While there are some options for non-bankable borrowers, many of these commercial property owners are uneducated about their alternatives and under-served by brokers, the industry experts often relied on for help. In choosing to work with borrowers seeking small-balance commercial financing, you are positioning yourself as a resource for potential clients who need your services.

Non-conforming commercial lenders have a greater appetite for risk.

Whether your commercial borrower has had past credit issues, delinquent taxes or an unusual property type, there are non-conforming commercial lenders that can provide them with the commercial mortgage they need. Unlike banks, which have much stricter funding guidelines, these lenders are will to take risks, which means you’ll be able to get your tougher deals closed.

Closings are faster.

Even if you’re working with a model borrower, banks take a substantial amount of time to close commercial mortgages because of industry regulations. Non-conforming commercial lenders, however, don’t face those regulatory hurdles and can generally close loans much more quickly. Read more about how working with APEX Mortgage can help you close more commercial loans.

Commissions are higher.

Again, because of industry regulations, if you’re closing loans with traditional funding sources, you’ll need to accept smaller fees. If you’re looking to earn higher commissions, non-conforming lenders are a great option. Learn more about working with non-conforming commercial lenders like APEX Mortgage.

For brokers looking to increase their business, the small-balance commercial mortgage niche is an excellent option. This under-served industry provides brokers with numerous opportunities to close higher-risk loans the banks won’t handle and to earn more income.


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