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Jarrettsville Federal supports businesses in our area. We are especially proud to have a number of small business clients. We can provide financing options for the purchase or improvement of commercial, investment or rental properties.
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Commercial real estate (CRE) refers to any income-producing real estate that is used for business purposes; for example, offices, retail, hotels, and apartments.
Why use a Commercial Real Estate (CRE) loan?
A CRE loan is used to purchase the land or commercial property your business needs and to leverage your equity to expand or remodel as your business grows.
Commercial loans typically for a term of 5 years, and the amortization period is often longer than the term of the loan. As your lender, for example, Jarrettsville Federal might make a commercial loan for a term of 5 years with an amortization period of 25 years. In this situation, the investor would make payments for seven years of an amount based on the loan being paid off over 30 years, followed by one final “balloon” payment of the entire remaining balance on the loan.
Commercial real estate (CRE) is income-producing property used solely for business purposes. Examples include office buildings, rental properties and other income producing properties. Financing—including the acquisition, development and construction of these properties—is typically accomplished through commercial real estate loans: mortgages secured by liens on the commercial property.