Loan FAQ Library

A blanket mortgage is a single loan that covers multiple properties under one financing agreement. Instead of separate loans for each property, all properties serve as collateral f...

Most commercial loans include prepayment penalties to protect lenders from losing expected interest income when a loan is paid off early. Common prepayment structures include: step...

Most commercial lenders require a minimum DSCR of 1.20, meaning the property's NOI is 20% greater than its annual debt service. Multifamily agency lenders (Fannie Mae, Freddie Mac)...

Mezzanine financing sits between the senior (first mortgage) debt and equity in a commercial real estate capital stack. It is typically a loan secured by a pledge of the borrower's...

A commercial loan assumption allows a buyer to take over the existing loan on a commercial property rather than obtaining new financing. This is advantageous when the existing loan...

Debt Service Coverage Ratio (DSCR) measures whether a property generates enough income to cover its loan payments.Formula: DSCR = Net Operating Income (NOI) ÷ Annual Debt Serv...