Solutions for the Business for Self Individual
Are you self employed and having trouble qualifying at your traditional bank for a Residential mortgage, a Commercial mortgage or a Day to Day business operating credit line? We can help! At MMG Mortgages, we have partnerships with the leading banks who specialize in creative financing solutions for the everyday self employed consumer.
Commercial Lending Made Easy!
Access to Operating Capital
MMG Mortgages can set up an unsecured term loan or revolving line of credit based on the net cash flow in your business. Once we review your business financial statements, we can tell you what dollar amount would be available for you.
Every business will have their slow periods whether that be related to economic changes, seasonal slowdown, business growth or staffing challenges. Having access to credit when you are self employed can be crucial for the operations of your daily business. We typically recommend applying for this credit when you don’t need the money and when your financial statements and accounts look the healthiest.
Commercial Construction Financing for Multi-Family and/or Single Dwelling
Draw mortgage financing can be utilized to purchase land and start the construction of your commercially or multi zoned property. Funds are advanced based on the percentage complete of the project. Interest is accrued or charged throughout the project and regular payments commence once the building is complete. No unit pre-sales? No problem, we still have financing solutions available. If you are building a unit for owner occupied purposes with the additional suites for rent, we can also use 100% of the projected rental income to offset your mortgage qualification.
If you are looking to leave the lease behind and buy your own office space, commercial building, professional building or a shop, we have options to secure financing at 100% of the property value. Various amortization options are available and we will shop the banks to secure the best rate options.
Residential Mortgage for the Self Employed Borrower
If you are like most business for self clients, you declare less on your tax returns then what you actually earn. The big banks will only use the income declared on your personal tax returns which might leave you short for the qualifying amount you were hoping for. At MMG Mortgages we have access to a variety of other options. We can “over state” your income with a reasonable amount for your industry and business profitability to qualify you with just 10% down payment and with using the lowest rates available. If this over stated income still isn’t enough, we can review your business bank statements from the past 12 months, annualize your deposits and use this amount for your income and qualifying. This type of lending may result in a 20% down payment and we wont ever look at the personally declared income on your tax returns. The possibilities and options are endless and at MMG Mortgages we have specialists available who cater in lending to the business for self client.
Commercial Lending FAQ
Q: What is a Commercial Appraisal?
A: During the times of the conditional approval being completed, a commercial appraisal is required. This is always at the applicants expense and can be relatively costly depending on the property, location and what approach is being taken for the appraisal (cost approach vs. value approach). The average appraisal could cost $2500.00 and we need to ensure that the appraisal is ordered from a firm that is acceptable to the bank. Some of our lenders will do their own internal appraisal and review and this could save you the upfront cost.
Q: Is there a fee to apply for commercial credit?
A: Yes, it is very common for a fee to be charged for commercial financing. Often times the lenders will take a small percentage up front and the remainder of the fee can follow at a later time. The total fee is typically based on a percentage of the mortgage amount. This fee is refundable if the lender can not produce an approval after the letter of intent had been issued. If the lender provides a conditional approval and YOU choose not to move forward then the fee is not refundable.
Q: Will MMG Mortgages finance start-up companies?
A: No, unfortunately this is not something we specialize in, but we can certainly refer you to companies that will.
Q: What is the Approval process when applying for a commercial loan?
A: Once we have a net worth statement, application, credit bureaus and all pertinent information on the subject property and borrowers, we can submit an application to the lenders for review. From there, the various lenders issue a letter of intent or discussion paper which is somewhat like a pre-approval. If you chose to move forward with one of the initial offers to turn that into a firm approval, you would need to pay a commitment or application fee to the lender and the due diligence and final approval process will be begin. It is at this time that the rates will be set, an appraisal would be ordered and a possible environment report may be needed. This process can take 2-4 weeks to complete.
Q: Do I need to personally guarantee my loan?
Q: What costs are involved when obtaining a commercial mortgage?
Q: What is an Environmental Report?