Bad Credit Commercial Loans – Free Ebook
Borrowers with 'bruised credit' seeking commercial loans should not give up all hope, despite the credit crisis. There are still commercial loan options for borrowers with scores in the 500's. And every action, large or small, should be taken by the borrower to improve their score.
Due to all of the bad news that we have all been subject to for the last year and half, many people have basically stopped bothering, even though they may have a doable deal. Owner occupants, meaning borrowers that occupy the commercial building with their business, have some of the best 'bad credit commercial loan' options out there.
For example we are still closing loans with rates in the 6%'s' At up to 80% sometime even 85% loan to value. These loan programs are tied to the Prime Rate which is currently at 4% which explains the low rates. The margin with these loans is normally 2.75% over, so the borrower's rate is 6.75% on most deals. Amortization period is 25 years.
It goes without saying that every action should be taken by the borrower to improve their credit score. The higher the score, the more options they have as far as loan programs. Probable the most important thing for borrowers to learn to do is write a proper dispute letter. Its critical to know the laws and to be able to quote them on the letters so that the creditors and bureaus know that you know your rights, and that they can't just blow you off (the free eBook describes how to do this ' link here). Or you can always go to your library and get a paper version.
Borrowers can do all of the work themselves and do not have to pay a dime to anyone to help them do this. Unfortunately most credit repair companies are unscrupulous and have poor track records. There are no secrets or tricks to this; it's all about follow up, being organized and presenting the proper arguments.
As a commercial mortgage broker we are interested in closing commercial mortgages, not selling credit repair. 'We want to get the chance to compete on commercial loans. The better the borrowers look to the lenders the better chance we have of successfully closing loans'. Comments Jeff Rauth, President.
