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Closing Non-Conforming Commercial Mortgages is Easy

Commercial Mortgage
Posted on 
October 24, 2017

Brokers looking to expand their business and earn more have a great opportunity in the form of small-balance commercial mortgages for non-bankable borrowers. This market is under served, and it’s simple to get started and close these loans.

Here’s what you can expect when you begin working on these types of deals:

Low-doc submission:

When you’re working with non-bankable borrowers, getting the required documents tends to be easier simply because non-conforming lenders don’t require as much as a bank does. Generally, all a small-balance commercial lender needs to take a look at a deal is a completed 1003 or application, a credit report with scores and tradelines and a detailed summary of the deal.

Common-sense underwriting:

Because non-conforming commercial lenders are usually working with borrowers who can’t obtain bank financing, their approach to underwriting tends to rely on common sense. These lenders are subject to the same strict guidelines as banks, so they can listen to your borrower’s story and take their situation into account when underwriting the mortgage.

Processing support:

Brokers looking to close small-balance commercial mortgages should seek out lenders who handle processing the deals. If the lender is ordering the appraisal, taking care of title work and scheduling the closing, this leave plenty of time for you to focus on your core business and bring in new deals.

Fee protection:

Many lenders limit the commission that a broker can charge, so it’s important to make sure that you work with lenders who allow you to charge fees that make sense for the amount of work you do. Non-conforming commercial mortgages can be a challenge, so find a lender that understands and allows you to make a commission that reflects that.

Non-conforming commercial mortgages are a great way for brokers to bring in new business and increase their income. As long as you’re working with a good lender, these deals are a simple, common-sense way for you to earn more income.


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