4 Types of Mortgage Loans in New York

Office building

New York City is the best city for small businesses in the US, offering significant disposable income and a solid consumer base. Most small business owners start from their homes, but gradually they require an office, storefront, and warehouse as their activities increase, which can be expensive.

 

Mortgage loans help business owners purchase commercial properties by offering adequate funding and flexible repayment options. Here are a few types of mortgage loans you can get in New York:

1. Hard Money Loans

Mortgage lenders offer short-term loans similar to commercial bridge loans used for purchasing or renovating a commercial property. Once you finance one portion of your project, you can refinance the loan to a long-term mortgage loan. Hard money loans are easier to qualify for and have quick approval and disbursal time.

 

Typically, hard money loans offer 80–90% loan to value and require a 10–20% down payment.

 

2. Balloon Mortgage

If you take a balloon mortgage loan for your project, you’ll have to make regular payments over specified intervals and complete the overall payment once the loan has matured. The interest rate of balloon mortgages is lower than hard money loans.

 

3. Fixed-Rate Mortgage

As the name suggests, these mortgages have fixed interest rates initially for one to ten years, depending on the lender. So you’ll have to make fixed payments over the specified period regardless of market conditions.

 

4. Adjustable-rate Mortgage

They are the opposite of fixed-rate mortgage loans, where interest rates change according to the market conditions. 

Commercial property in New York

Securing a traditional mortgage loan can be difficult with fluctuating economic conditions. But you can secure any of these mortgage financing solutions at a private lending company like Global Capital Partners Fund without hassle. They offer various commercial financing solutions, acquisition funding, and hard money loans for real estate in New York. Visit their website or contact them for details.

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