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In the UK there is a distinction between commercial mortgages, which are for the purchase of non-residential real estate, and buy-to-let mortgages, which are for the purchase of residential real estate to let out to paying tenants. Buy-to-let loans may be offered by both commercial and residential mortgage lenders.
Commercial lenders include commercial banks, mutual companies, private lending institutions, hard money lenders and other financial groups. These lenders typically have widely varying standards on which they base their loan criteria and evaluate potential borrowers—but are often focused exclusively on the private market and have more lenient financial qualifications than banks.
Commercial real estate first mortgage debt is generally broken down into two basic categories: (1) loans to be securitized ("CMBS loans") and (2) portfolio loans. Portfolio loans are originated by a lender and held on its balance sheet through maturity.
Commercial real estate loan. Designed for businesses that want to open a physical location. The money can be used to purchase property or lease space. May be able to borrow as much as $5 million.
Commercial real estate loans. Commercial real estate purchase or lease. Businesses looking to open up a physical location. Microloans. Inventory, supplies and working capital.
Two weeks ago, Wells Fargo disclosed that it had an allowance of $2.42 billion for future credit losses. Scharf said concerns about commercial real estate are waning, however, as interest rates ...
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