Texas Commercial Mortgage Loans
Texas Commercial Mortgage Rates - Rates updated July 7th, 2020
|Loan Product||Starting Rates||LTV|
|Single Tenant Lease Rates||3.51%||Up to 75%||Get Free Quote|
|Commercial Mortgage Rates||3.81%||Up to 75%||Get Free Quote|
|Multifamily Mortgage Rates||3.41%||Up to 80%||Get Free Quote|
|Business Real Estate Loans||3.61%||Up to 90%||Get Free Quote|
Select Commercial is a leading commercial real estate lender. We have excellent commercial mortgage loan products and options available for owners and purchasers of commercial real estate and multifamily buildings throughout the state of Texas. While we lend across the entire continental United States, we are able to give our best rates and loan programs to certain areas that we feel are strong markets. Texas is one of the states that we consider to be a premium market and we actively look to originate good quality loans here for our clients. We have a diverse array of many available loan products to help qualified TX borrowers looking to purchase or refinance a commercial property. If you are looking to obtain an multifamily building loan or commercial real estate loan, don't hesitate to contact us. There are many reasons why our customers like doing business with Select Commercial. We have a simplified application process and we do not charge any upfront application or processing fees. We typically offer 24-hour pre-approvals with no-cost and no-obligation. Our long term fixed rates are excellent, and we look to close within 45 days of application. Our staff is professional and knowledgeable, and we look forward to working with you on your next commercial mortgage transaction.
Texas Commercial Mortgage Benefits
Texas commercial mortgage rates start as low as 3.41% (as of July 7th, 2020)
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily , 75% on commercial (90% with SBA)
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
Recent TRUSTPILOT Reviews
Select Commercial Funding Reviews from TRUSTPILOT
A three year journey
"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"
Commercial Mortgage Rate Trends in 2020
At the beginning of 2020 the overall market outlook did not suggest any crucial factors that would negatively impact the commercial mortgage market. Commercial mortgage lenders and investors expected a very profitable 2020. Almost 65 percent of the top commercial real estate companies believed that commercial mortgage loan originations would go up this year and over 15 percent anticipated an overall rise of over 5 percent. Data released at the beginning of 2020 indicated that commercial mortgage lenders were expected to close over $680 billion of commercial mortgage loans this year. Experts were of the belief that commercial mortgage lenders would remain bullish about making loans. In addition, as commercial mortgages rates were expected to go down most industry leaders were convinced that borrowers in 2020 will have a strong desire to take out commercial mortgage loans. However, with the recent outbreak of the Covid-19 pandemic, the US and global economy has been incredibly unstable. The stock market seems to be bottoming out and commercial mortgage rates have been hit very hard. While the Fed has dropped short term interest rates, long term commercial mortgage rates have actually been rising. Huge cities like New York are shutting down. In this economic climate, many investors are scared to purchase commercial real estate and to take out commercial mortgages. Additionally, the oil industry has been hit hard. Not only are people traveling less due to coronavirus, China and Russia are currently involved in a price war which is driving the price of oil way down. Many people are optimistic that as spring and summer roll in and public health officials learns how to handle this pandemic, the economy should regain its strength.
What Happened with Commercial Mortgage Rates in 2019
As we review the 2019 year, the commercial real estate market continued to flourish as the longest economic recovery in American history continued. Due to both GDP growth and a steady decline in the unemployment rate, 2019 saw the stock market make huge gains. Many investors thought that commercial mortgage rates would go up last year. However, in actuality commercial mortgage rates actually went down three times. These interest rates helped to spur investors to put more money into commercial real estate. With regards to commercial mortgage loan origination, the 2019 fiscal year far exceeded expectations due to solid fundamentals, low interest rates and higher demand for commercial mortgages. While 2018 commercial mortgage volume totaled about $339 billion, an increase of 18.9% from 2017, the 2019 numbers total about $369 billion. On a larger scale, the 2019 economy prospered overall. Over the course of the year about 2.1 million jobs were added to the market. In addition, the unemployment rate decreased about 50 basis points last year, matching the lowest unemployment rate in fifty years. At the beginning of 2019 many investors were expecting a recession. However, the economy improved as job growth rose and the unemployment rate decreased. This economic improvement had an immensely positive impact on the commercial real estate market as more investors rushed to put their money into commercial properties.
Texas Commercial Mortgage Loan Options
We arrange commercial mortgage financing in the state of Texas for the following:
- Multifamily Loans – we actively lend on garden apartments, high-rise multifamily buildings, student housing complexes, underlying cooperatives, and all other types of residential dwellings. We consider loan requests up to 80% LTV. We offer loans with and without recourse (personal guarantees) and with and without prepayment penalties. We offer fixed rate loans with terms from 3 to 30 years.
- Office Building Loans – we lend on all types of office properties, including multi-tenant and single tenant buildings in all locations. We lend on both owner occupied and investor properties. We typically lend up to 75% LTV on investor properties and up to 90% on owner occupied properties. Most loans are written for either 5, 7, or 10 years at a fixed rate with a 25-year amortization.
- Retail Building Loans – we gladly consider requests for commercial mortgage loans on shopping centers, retail strip centers, and individual retail stores. We are a little bit more conservative on retail loans these days based on the current climate for retailers and will consider LTV ratios of 65%-75% depending on the deal. We actively lend on NNN single tenant retail locations such as Starbuck’s, CVS, Walgreens, Dollar General, and other national credit rated tenants.
- Industrial Property Loans – we love to lend on warehouses, distribution centers, manufacturing facilities and other industrial properties. Often, these properties are owner occupied by the owner’s business. We also lend on multi-tenant industrial properties as well. We look for properties in good locations with access to population centers and transportation.
- Single/Special Use Loans – we have a special lending division that understands small business lending secured by owner occupied businesses such as motels, gas stations, restaurants, car washes, retail stores, and other specialty properties. Many banks have a hard time with this type of lending as they often do not understand the underlying businesses.
- Investment Property Loans – any and all income producing property will be considered. We are cash flow driven lenders and look for properties that generate positive cash flow for their owners. We will consider portfolios of single family residences under this group.
- Bridge Loans – many borrowers do not qualify for regular institutional financing due to various short-term obstacles which need to be resolved before they can qualify for bank type financing. These borrowers often require short term loans, or bridge loans, to overcome these short-term problems.
Texas Commercial Mortgage Information and Economic Overview
Texas has the second largest economy in the United States, trailing only California. It has a gross state product of over $1.6 trillion. If Texas were a sovereign country, it would be the 10th largest economy in the world by Gross Domestic Product. Texas is home to 51 of the Fortune 500 companies. With a household income of $48,259 Texas ranks 25th in America. With a population of almost 30 million people and over 265,000 square miles of land, Texas is one of the three states contributing to over 40% of the U.S. and is larger in size than California and the entire country of France!
Commercial real estate in Texas is booming and investors should definitely look into receiving commercial mortgage financing here. The Texas investment property and multifamily industry supports approximately 380,000 jobs and contributes almost $60 billion to the state’s overall Gross State Product. When measured in terms of development, these numbers actually rate the Texas economy ahead of California! Texas’s large population, world famous educational institutions and thriving cities are all crucial factors that help create demand for commercial real estate investment in Texas. In terms of commercial mortgages, there are over 2.6 million mortgages for properties throughout the state of Texas. The average value of these commercial mortgages is over $5.4 million, 5% above the United States average. This data demonstrates that Texas is a great place to take out a commercial mortgage loan.
The Dallas-Forth Worth Metroplex is home to two of the fastest-growing cities not only in Texas but in the entire country. This metro area has been rated as the top investment property market in the U.S. With the inflow of new investors, Dallas has developed a much more diversified economy, a huge reason to invest in the Dallas Texas commercial real estate and multifamily market. In the multifamily and apartment space, rents have grown 3%. Additionally, in the second quarter of 2019 net absorption hit it the highest it’s been in 30 years. The delivery of multifamily and apartment buildings has exceeded the annual start, while single family developments are declining. Renters in Dallas Texas now have access to a wide range of property types. From low cost apartments to expensive condos, investors have readily available and accessible markets in the business.
Houston is another city in Texas to invest in commercial real estate. With a population of more than 2 million people, Houston is not only the largest city in Texas but is also one of top 5 most populated cities in the country. Houston has a thriving economy with tons of job growth. In commercial and industrial markets alone, job growth is projected at over 100 thousand jobs gained year-over-year. In the second quarter of this year rents in apartment buildings rose significantly and occupancy reached over 90%. Year to date absorption has reached over 10,000 new units, more than the entire amount absorbed last year. Additionally, there have been more apartment deliveries in 2019 than there were last year. Furthermore, rental rates for properties in Houston have continued to go up this year. Commercial real estate properties, specifically in the industrial sector have gone up over 1 percent. Retail and office spaces have seen increased rents as well. These numbers make now an amazing time to invest specifically in commercial real estate in Houston Texas.
Investing in the Texas market has provided investors great returns recently. Since 2010, the population has grown by 3.5 million translating into one and a half million new homes. Just under 2 million of those people came from elsewhere, attracted by better employment opportunity and by sensible home prices. Those attractions are still there – look at the rate of job growth in Dallas and Houston this past year, almost to 4%. That’s twice the national average making now as great a time as any to look into commercial mortgage financing in order to invest in Texas investment properties and multifamily buildings.
Texas Commercial Mortgage Loans
Select Commercial provides commercial mortgage loans and multifamily financing throughout the state of Texas including but not limited to the areas below.
• Houston • San Antonio • Dallas • Austin • Fort Worth • El Paso • Arlington • Corpus Christi • Frisco • Brownsville • McKinney • Plano • Laredo • Lubbock • Garland • Irving • Grand Prarie • Amarillo