Commercial Second Mortgages2018-09-06T04:58:51+00:00

Commercial Second Mortgages

A second mortgage is a secured mortgage loan that sits behind your existing first mortgage that allows you extract equity from your commercial real estate property. Our commercial lending team provides commercial second mortgages from traditional banks and private lenders.

Commercial Second Mortgage Financing Options

Commercial second mortgages are often used in conjunction with a new first commercial mortgage loan. Typically the commercial second mortgage will have a term of one to five years with interest only payments. While commercial second mortgages can be critical in some financing scenarios, consideration must be given as to whether or not you have the ability to service both loans.

There are clear advantages to this type of creative financing. The most frequent use is a commercial second mortgage that reduces the LTV (loan to value) of the first mortgage in order to allow you to more easily qualify for the mortgage. An example would be where the primary lender (first mortgage holder) will only lend 70% LTV and you only have a 20% (or less) down payment. A commercial second mortgage can be used to make up the difference.

There are a variety of options available to you such as: interest only payments, annual payments, exit fees, etc. that will help keep your immediate payments down and defer the costs of the commercial second mortgage. The idea is to give the property time to appreciate and thereby allow you to refinance and consolidate both the first and second mortgages at a later date at a then lower LTV.

Benefits of a Second Mortgage

  • New Renovation or Construction Projects

  • Business Expansions, Mergers or Acquisitions

  • Working Capital For Your Business
  • Debt Consolidation
  • Short Term Bridge Financing

Lending Options

  • Transaction Size: No Limits
  • Term: 1 to 5 Years
  • Amortization: Up to 30 Years
  • Loan to Value: Up To 75%

  • Interest Rates: Starting at 6.50%

Rates and terms can change without notice. All transactions are subject to underwriting and written approval.

Second Mortgages

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