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.

More Blog Posts

Believe in Mission Fed

Photo of a happy couple who believe in Mission Fed

We mean it when we say that your success is our bottom line. We’ve put our members first since 1961...

We mean it when we say that your success is our bottom line. We’ve put our members first since 1961, and are proud to offer knowledgeable service and ethical practices to over 200,000 members. We believe in our members, and our members believe in the benefits and...

4 Ways to Start Rebuilding Your Credit Today

Photo of a man rebuilding his credit.

When it comes to using credit, anyone can make mistakes. The good news is that you can come back...

There are a few ways you can improve your credit score. Start with a solid budget to begin repayment and make timely, consistent payments. Keep your spending in check with a secured credit card and a debt-to-credit ratio of 30 percent or less. With a little time and...

Why Your Credit Score Matters

A happy man reviewing his positive credit score on his phone.

Your credit score can determine what your economic future looks like. Understanding why your credit...

Understanding how the credit score scale works and why your credit score matters will help you work on improving and maintaining a good credit score. While mistakes can hurt your credit score and impede your ability to secure loans and low interest rates, a good credit...

You can have a Financially Healthy 2018

Photo of couple managing their finances.

With the New Year just around the corner, now is the perfect time to start making plans for a...

With the New Year just around the corner, now is the perfect time to start making plans for a financially healthy 2018. A great way to start is by reflecting on the financial successes and challenges you encountered during 2017 and using them to help you have an even...

Branch/ATM Locator

Search for Mission Fed Branches and ATMs, or 30,000 CO-OP Network ATMs Nationwide