Advantages of Non-Bank Commercial Mortgage Lender Options

Sometimes commercial real estate investors and owners make the mistake of thinking that a traditional bank is the only option when it comes to a commercial lender for their commercial mortgages. But the truth is that non-bank lenders are a viable, reliable, and often superior alternative to banks because they can offer less stringent approval requirements, increased flexibility, and more personalized service. If you're in the market for investment property loans and are looking for options, here's what you need to know about the benefits of non-bank lenders.

It Can Be Easier to Get Approved

Non-bank commercial mortgage lenders are generally more flexible than banks in terms of approval criteria, and this means it’s easier for you to get approved for the investment property loans you need. Because they're less stringent, non-bank lenders are more likely to approve loans for people who:

  • Don't have perfect credit
  • Have insufficient collateral or assets
  • Can't provide the documentation banks require
  • Have already been declined by a bank
  • Want a high-ratio mortgage
  • Have lower cash flow

Non-Bank Lenders Offer More Flexibility

The increased flexibility non-bank lenders offer can make all the difference for borrowers who are struggling to secure bank financing for commercial or multifamily commercial loans.

The fact is that bank programs typically include credit and documentation requirements that are far too rigid for many credit-worthy borrowers. For instance, self-employed investors in need of a multifamily commercial loan may not be able to provide tax returns to prove their income. Another common restriction is the amount of cash-out borrowers are able to access when refinancing.

Non-bank lenders place fewer of these restrictions on prospective borrowers. This flexibility may come with a slightly higher interest rate, but the trade-off is more than worth it for those borrowers are unable to work with banks or those who are looking for a loan that meets the greatest number of their needs.

You'll Get More Personalized Products and Services 

Another great advantage with non-bank lenders is they tend to focus more on the customer, meaning you'll get personal service from real human beings, customized loan options, and access to a wider range of niche loan products that are tailored to your needs. Those who work at a non-bank lender will examine your circumstances, scour their resources to find a loan product that’s ideal for you, work to get your loan approved, and provide help every step of the way through the application, approval, and closing processes.

Bank mortgages are a great option for some commercial real estate investors and owners, but many people have found that non-bank commercial lenders are the way to go. Contact Investment Property Loans today if this sounds like the type of experience you'd like for your next commercial mortgage.