Commercial Loan Guidelines are Changing!!

Commercial guidelines are changing. Hopefully this whole "Wild West" feel of the commercial banking will start to be more regulated and brokers who have no clue what they are doing will start to be eliminated.
Lenders are starting to update their guidelines. Before lenders typically really focused on the property and the strength of it rather than the borrower. Underwriters are starting to realize that if a single tenant triple net lease property is guaranteed by a corporation, the company could file bankruptcy allowing them to get out of the lease. Even if its a flagged tenant who has occupied the property for 20 years and never been late, underwriters looked at it the same way. Now they are requiring more and more that the borrower must be strong. They must have strong experience, often live in the area they are investing and have strong net worth. They don't have to be able to handle the lease payments, but they need to have good reserves and income on their own.
The focus now is not what the rate so much anymore, because rates are super low...its if who your using can get the deal done. Make sure that your broker is aware of the guidelines and the changing of them.
We are still here and going stronger than ever to meet all of your commercial and residential financing needs with new programs to give you and your clients creative solutions!!