The 9 Commercial Real Estate Loan Terms You Didn’t Know Were Flexible

Commercial Real Estate loans are different than Residential Mortgages.

Many real estate investors may not be aware that commercial real estate loan terms can be quite flexible and structured in different ways. This does not mean that all loan terms are flexible in all situations. But, at Northern California National Bank, we do make the effort to understand each loan applicant’s unique needs and try to structure loans that accomplish your goals as a borrower while fitting within our policies and guidelines.

Below are the nine terms that can be flexible:

• Loan-to-Value
• Loan Term
• Loan Amortization
• Fixed Interest Rate vs. Variable Interest Rate
• Loan Fees
• Prepayment Penalties
• Personal Guarantees
• Interest-Only Periods
• Loan Performance Covenants

If you have a prospective loan request in mind, or simply would like to learn more about commercial real estate loans, we would love meet and help answer any questions you may have. At Northern California National Bank, we want to be a valuable resource to the real estate investors and small business owners in our community.