Michigan Business Loan
Michigan Business Loan
Michigan commercial business loans can be risky if you don't present your proposal
the right way. We always look at all our loans as if we are borrowing the money
ourselves. We can present your loan to the best lenders to find the best loan
program for your financial needs. Part of it is find the best terms and
wholesale interest
rate without a pre-payment penalty. If you are seeking money in the form of a secured commercial
loan, we are a useful source to assist with your financing needs. At Inter-Lake
Mortgage Company we know just how
frustrating it is to borrow in today’s Michigan economic environment.
Commercial loan is exactly what you need. We have the right lenders
for your type of loan. Simply input your needs.
We will contact you to put the best loan program together for you.
Commercial lenders are fussy. No problem. If you had your loan turned down
you are NOW at right place to have your commercial mortgage presented by our
professional commercial loan officers. We know what lenders are looking for. The way
we put your proposal together the lenders want to do business with you.
Commercial Underwriting Guidelines
Commercial Financing is underwritten on a case by case basis. Every loan
application is unique and evaluated on its own merits, but there are a
few common criteria lenders look for in commercial loan packages.
Commercial Lending Ratios
Most of real estate lending can be boiled down to the results of three
ratios:
- Commercial Loan-To-Value Ratios
The loan-to-value (LTV) ratio is probably the
most important of the 3 underwriting ratios. The equity your have in the
property the less risk for the lender.
- Commercial Debt Ratios
When analyzing the personal budget of a borrower, lenders use two
different debt ratios to determine if the borrower can afford his
obligations. These two debt ratios are:
- Commercial Debt Service Ratio
The most important ratio to understand when making income property loans
is the debt service coverage ratio. See below.
To calculate the debt service coverage ratio (DSCR), simply divide the net
operating income (NOI) by the mortgage payment. For the sake of simplicity,
let us assume that there is only one mortgage on the property:
$500,000 First Mortgage
6.5% Interest, 25 year amortization
Annual Payment (Debt Service) = $40,512.48
DSCR = Net Operating Income (NOI) = $60,000
Total Debt Service $44,340
DSCR = 1.48%
Commercial Property Types
Listed below is a partial list of properties that require commercial
financing.
- Apartments
- Restaurants
- Gas Station
- Retail
- Manufacturing
- Multifamily
- Self Storage
- Retail
- Office
- Warehouses
- Mixed Use Properties
- Auto Dealers
- Auto Repair
- Medical
- Hotel
- Motel
- Trucking
- Service
Commercial Loan Checklist
The list will help you identify the types of information a
banker will need to make an informed decision about your business. Contact
us for the list of information you will need.
Credit Lines
Under a credit line agreement, the lender supplies you operation with funds
intended to fill temporary shortages in cash that are brought about by
timing differences between outlays and collections. Typically used to
finance inventories, receivables, project or contract related work. |
