6 Reasons to Use Mission Fed for Commercial Real Estate Loans

July 24, 2015 | Steve Hable

6 Reasons to Use Mission Fed for Commercial Real Estate Loans

There are numerous lending sources for commercial real estate loans. Commercial banks, mortgage companies, and some credit unions offer loans on commercial real estate. There are six key areas that set Mission Federal Credit Union Commercial Real Estate Loans apart from the others.

  1. We have a very knowledgeable staff with over 100 years of combined experience! Commercial real estate lending is very complex because it requires detailed analyses of the property and the borrower. Every loan request is unique. Appraisals and environmental reports take 2-3 weeks to complete and cost over $1,500 each. It is critical to determine the amount, rate and term of the loan we believe we can offer to the borrower in a timely manner before we actually begin processing a loan.
  2. Loan underwriting is done by Mission Fed staff and we’re all local. Many lenders have loans underwritten by regional offices in other cities or contract the underwriting assignment to independent underwriters. Not only does this add time and cost to the process, the out-of-town underwriter may not understand the San Diego market as well as we do.
  3. The same is true for loan servicing. With many lenders, payments are often made to regional loan offices or large loan servicing companies in other states that cannot provide personal service. Mission Fed borrowers can make payments at any Mission Fed branch and if any problems arise, decision-makers can meet with the borrower at the property to discuss alternatives.
  4. Excellent rates and low costs. Like all of Mission Fed, we are here to serve the members with great loan products at the best possible cost for each individual situation.
  5. Unlike banks, insurance companies and most other credit unions, Mission Fed does not charge a prepayment penalty. With commercial real estate loans from other lenders, borrowers are assessed a penalty if the loan is repaid ahead of schedule. Penalties typically range from 1% to 5% of the loan balance. That means on a $1 million loan, a borrower could incur an additional cost of $50,000 for paying the loan off early! Some institutions have prepayment penalties that are enforced until the last 6 months of the loan term—we don’t, because we don’t have prepayment penalties in the first place.
  6. Because commercial real estate loans are so complex, borrowers often work with a mortgage broker to assist them. At Mission Fed, members can obtain a commercial real estate loan through their mortgage broker or directly with our loan officers.

Mission Federal Credit Union offers Commercial Real Estate Loans for apartments, retail centers, office buildings and industrial buildings—and we’ve expanded our lending area beyond San Diego County, too. Mission Fed’s Board of Directors recently authorized us to include the counties of Los Angeles, Orange, Riverside and San Bernardino in our lending territory. We’re excited about the new lending opportunities and look forward to helping you fund your next loan.

Steve Hable

Steve Hable

Steve Hable is Mission Fed’s 1st VP Member Business Lending and has been in the real estate finance industry for over 30 years. His experience includes all facets of residential and commercial real estate finance, including loan origination, loan underwriting, servicing, secondary marketing (plus establishing private mortgage-backed securities on Wall Street), and property management of commercial properties.

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