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Alternative Commercial Mortgages Benefits Borrowers and Brokers

Commercial Mortgage
Posted on 
August 27, 2020

There are commercial mortgage options out there for every borrower; brokers just need to know where to look and where their borrower fits. You will encounter business owners and property investors who can easily qualify for bank financing, while others will need another option. Therefore, every broker should take the time to understand alternative commercial mortgages.

Below is a selection of some of our blogs dedicated to helping mortgage brokers learn more about how to handle a bank turndown, how to find the right commercial mortgages for their borrowers, and how alternative commercial mortgages could be the best fit.

Consider the Alternative: Non-Conforming Commercial Mortgages

After a bank turndown, a high-interest hard money loan might look like the only option, and in some cases, it will be the best choice for your borrower. However, there are plenty of non-conforming commercial lenders who operate in the space between the bank and hard money. With better terms and interest rates than hard money lenders, and more flexibility than banks, these lenders can be a valuable asset to many commercial mortgage brokers. Click here to learn more about how to navigate the middle ground of non-conforming commercial mortgage lenders.

How to Find the Right Commercial Mortgage for Your Borrower

Commercial mortgage brokers are likely to see a wide variety of borrowers looking for a wide variety of loan products. This will almost certainly include borrowers stuck between the bank and a hard place – that is, borrowers who don’t qualify for bank financing, but don’t want or need a short-term hard money loan. Maybe they’re even looking to refinance to pay off a hard money loan. For these borrowers, a non-conforming, small-balance commercial mortgage could be a great solution.  Click here to read about how to know what type of commercial mortgage is best for your borrower and how to find that financing.

The Benefits of a Flexible Commercial Mortgage Lender

In order to be successful, it’s important for mortgage brokers to work with a variety of lenders, including flexible lenders who specialize in small-balance commercial financing. While banks and other traditional funding sources are going to be important to your business, a small-balance commercial lender that offers flexibility will allow you to fund tougher deals and earn additional income. Click here to read about what to expect from a flexible commercial mortgage lender.

Don’t Let Alternative Commercial Mortgages Scare Your Borrowers

For brokers closing commercial mortgages, it’s not unusual to work with small business owners who don’t qualify for a bank loan. Once a borrower is turned down by the bank, they often assume there are no good options left and are wary of non-conforming commercial mortgage lenders. As their broker, it’s your job to find them the best deal possible and to explain why alternative commercial mortgages are nothing to be afraid of. Click here to learn more.


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