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How a Small-Balance Commercial Lender can Finance Your Borrower’s Unique Property

Commercial Mortgage
Posted on 
July 9, 2015

There are certain commercial property types that can be difficult to finance through banks or other traditional lenders. As a commercial mortgage broker, it’s important to work with a small-balance, nonconforming lender so that your borrowers with unique commercial properties have a funding source. Whether you’re a commercial broker who routinely sees properties like funeral homes, warehouses or churches, or you’re a residential broker who happened upon a daycare owner seeking a mortgage, here are some reasons to build a relationship with a small-balance commercial mortgage lender.

They offer flexibility.

Because banks and other traditional lenders have to comply with stricter regulations, they can’t finance borrowers who fall outside their mortgage parameters. Small-balance commercial lenders, however, have the freedom to provide financing to these borrowers. Non-conforming lenders can look more closely at properties that banks deem too difficult and can secure your borrower the commercial mortgage they need.

They understand small-business owners.

If your borrower has had any financial issues in the past, it makes it doubly hard for a bank to fund their unique property. Small-balance commercial lenders are usually more than willing to listen to your borrower’s story and to find a funding solution that works for them.

They understand unique commercial properties.

Oftentimes, banks turn down unique properties for financing because their strict requirements don’t allow them to really dig deep and understand these properties. Small-balance commercial lenders are more willing to evaluate all aspects of a property and to recognize the inherent value in your borrower’s building.

While a bank or traditional lender might be unable to fund a unique property type, many small-balance commercial lenders can step up and provide the financing your borrower needs. Whether they’re looking to purchase or refinance their property, a small-balance lender can help by being flexible and taking the time to listen to and understand your borrower and their property. And if you’re willing to work with commercial borrowers who own unique properties, you’ll expand your business and close more commercial mortgages.


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