I have never got a commercial loan before; only res. I have credid around 680, modest income but down payment money. Do the commercial lenders look to my income for supporting payments or do they really look at the deal and just check my credit to see if I am responsible?
A commercial loan is based and approved on the merits of the property subject to the buyer / owner having down payment and resources to meet the demands of the property as an investment.
The lender will look at the rent rolls and fair market rents, income & expense statement, what percentage of value you intend to borrow (Normally 70 to 75%), the ability to service the loan (Mortgage amount as a monthly payment), vacancy factor, cap rate, down payment and ability to manage.
They look to the borrow (s) to check your credit report for judgements; or missed payments within the last 2 years, they check your income, track record and experience to manage as an owner this type of property. (They also check your credit to determine you are who you say you are.)
They do not look for your income to support payments, however your income must be sufficient to cover cost’s of expenses and incidentals involved with getting back and forth to manage the property investment from an owners perspective.
Now if you were say buying a strip center which has not been completely built out, and as a condition of leasing units it’s estimated you would need $25k per unfinished unit to build out to standard specs for leasors you would then be looked at to have sufficient capital to contribute to each units build out in reserve.