Wednesday, July 11, 2007


Commercial property in Silicon Valley has rebounded after a prolonged downturn which began in 2001. Vacancies in all classes of commercial real estate are down sharply, and rents are up. Business owners and investors can look at a vastly improved (and more realistic) economy in Santa Clara County, California, and see strong indications for purchasing.

There are now many lenders interested in making small ($100,000 - 2,000,000) commercial loans. More lenders means more competition for borrowers, so it really makes sense to have someone shop for you. Loan programs are available for fully documented borrowers, stated income and even "no docs". Many lenders have relaxed the traditionally higher down payment requirement for commercial property, and are willing to loan with borrowers only putting down 10% or even as low as 3%.

Commercial loans are underwritten differently than residential mortgages, and interest rates depend on a lot of variables. To obtain the lowest rate and most appropriate financing, it's best to have a licensed mortgage professional research the gamut of lenders for you and help you through the process.

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