CCM-Finance

A commercial real estate loan or commercial hard money loan is a mortgage loan secured by a lien on commercial, rather than residential, property. Commercial real estate (CRE) refers to any income-producing real estate that is used solely for business purposes, such as retail centers, office complexes, hotels and apartments. Financing, including the acquisition, development and construction of these properties, is typically accomplished through commercial real estate loans. 

Types of Commercial Real Estate Loans

The following are some of the most common types of commercial real estate loans:

1. Permanent Loans are basic first mortgages on a commercial property. A permanent loan must have a degree of amortization and a term of at least five years written into the contract.
2. SBA Loans are written by traditional and non-traditional lenders but are guaranteed by the Small Business Administration (SBA). There are several different SBA loans catered to different types of borrowers.
3. Bridge Loans provide a short-term first mortgage loan on commercial property with a term usually from 6 months to three years. Bridge loans are typically obtained when a borrower is waiting for longer-term financing or attempting to remove an existing obligation.