A great office or storefront–in the perfect location–can make all the difference for your growing business.
TFNB wants to help your small business find its home in Central Texas. Our commercial real estate loans can fund any office, retail, or industrial space. With a vested interest in our local community, TFNB is the lender you can trust for your Waco business.
Have you found the perfect place to set up shop? Contact us today for help securing a commercial mortgage.get started
Real Estate Loans for Your Business
Real estate loans are like home loans. Each divides the cost of property into smaller, more manageable monthly payments. Use a commercial real estate loan for almost any property you use for business.
This may include:
- Office space
- Retail storefront
- Industrial building
- Multi-family housing
- Restaurant space
- Commercial properties you lease for profit
Like a commercial real estate loan, we also offer commercial construction loans. Depending on whether you’re looking to buy or build, one may be a better solution for your business.
What to Expect with a Commercial Real Estate Loan
Commercial real estate loans have a few nuances you should be aware of.
Traditional home loan mortgages span 15, 20, or 30 years. Commercial real estate loans usually have shorter terms. These loans can range from five to 20 years.
Also, the amortization period of a commercial loan is often longer than the loan term. That means that you may make regular monthly payments on the principal of the loan for the length of the loan term (for instance, 10 years), but the payment amounts would be equal to if the loan was for 20 or even 30 years. When you reach the end of the 10-year period, the final “balloon” payment covers the rest of the balance of the loan.
Commercial real estate loans are often more expensive than home loans. The average down payment for a home hovers around seven percent of the purchase price. Down payments on commercial real estate loans are around 20 or 30 percent. Interest rates also tend to be higher with commercial real estate loans, at around 10 to 20 percent.
Another option you may consider is an SBA commercial real estate loan. If you qualify, you may receive a lower interest rate, depending on the size and the length of the loan. As the only SBA-approved lender in McLennan County, we have a lot of experience with real estate loans through the SBA’s 504 Loan Program.
Learn more about TFNB’s SBA lending solutions here.
Qualifying for a Commercial Loan
When you apply for a commercial loan at TFNB, we consider the following:
- The property and its value
- Your personal credit history
- The financial history of your business
- Current cash flow
Your company’s debt-service-coverage ratio (Debt-service coverage ratio is calculated by dividing your annual net operating income by your annual total debt service. Total debt service is the amount you’ll pay back to cover both the principal and interest of the loan)
Real Estate Loans for Your Waco Business
Have you found the perfect location for your business? If so, we can help you move in sooner with a commercial real estate loan. As a preferred SBA lender, we offer choices when you need funding for your next move. That’s why TFNB is the bank of choice for so many small businesses in Waco, McGregor, and the rest of Central Texas.
Ready to learn more or apply for a commercial real estate loan? Visit a TFNB location today or contact us online below.
Questions about real estate loans? We can help!
Fill out the form below and we’ll be in touch with answers!