Frequently Asked Questions
Who is INSIGNIA Financial Services?
INSIGNIA Financial Services is a privately held capital markets advisory that arranges commercial real estate financing for real estate investors, commercial property owners, builders, and developers.
Is INSIGNIA Financial Services a direct lender?
INSIGNIA Financial Services provides direct, balance sheet lending for certain types of transitional and bridge loan requests.
Most other types of loan requests are fulfilled through our vast network of capital providers, such as agencies, banks, conduit lenders, credit unions, debt funds, family offices, life company lenders, and private lenders.
Our streamlined lending process enables business owners and real estate investors to seize opportunity with greater certainty of execution, a streamlined process, and an exceptional experience.
What type of properties do you finance?
INSIGNIA Financial Services offers commercial real estate loans designed for the following property types:
- Multifamily
- Assisted living facilities
- Student housing
- Mixed-use
- Office
- Industrial outdoor storage
- Warehouse
- Retail
- Self-storage facilities
- Industrial
- Hospitality
- Medical office buildings
- 1-4 unit rental properties
- Land
- Pre-development
- Construction
What is a commercial mortgage loan?
A commercial mortgage is a loan used to finance the purchase, construction, renovation, or refinancing of commercial real estate, such as office buildings, retail space, warehouses, storage facilities, apartment buildings, and other commercial property types.
What are the different types of commercial mortgage loans?
There are many loan options available, including permanent financing, bridge loans, term loans, construction financing, SBA loans, FHA loans, USDA loans, and specialty loans.
Our expert Advisors will help you determine the best option for your specific needs.
What is a commercial mortgage broker?
A commercial mortgage broker acts as an intermediary between prospective borrowers and potential lenders.
Commercial mortgage brokers serve as expert guides, assisting borrowers in navigating the complexities of various loan types and requirements, ultimately selecting the optimal option for their unique needs.
Commercial mortgage brokers also possess the adeptness to negotiate better rates, terms, and fees from different lenders, enabling borrowers to secure more advantageous terms. With their extensive network, brokers can leverage competing lenders to secure longer loan terms, lower interest rates, and reduced origination fees, substantially minimizing the overall loan cost for borrowers.
Learn more about why you should use a commercial mortgage broker here.
What type of Borrowers does INSIGNIA work with?
INSIGNIA Financial Services specializes in working with real estate investors, commercial property owners, business owners, builders, and developers.
We offer a variety of loan options spanning a wide range of property types and uses.
We provide financing that is typically used for acquisition, construction, refinance, renovation, or recapitalization of real estate projects.
How is INSIGNIA different from a bank?
We leverage our extensive network of hundreds of banks, non-bank lenders, and in-house private capital to fulfill a wide range of financing needs.
How long does the commercial loan process take?
The loan process can take anywhere from 10 days for asset based or hard money loans to 90 days for certain government guaranteed loan programs, depending on the type and complexity of the loan. Get in touch with us to inquire about typical turn times for your specific financing needs.
What documents do I need to provide for a commercial loan application?
The documentation required will vary depending on the loan type, lender and the property, but generally include financial statements, tax returns, property details, and business plans.
If you’re seeking renovation or construction financing, architectural plans, a construction budget, project timeline, and contractor information will be required during the application process.
Your INSIGNIA capital advisor will provide you with a list of the documents required for your specific loan scenario and will assist you with preparing supporting information as needed.
What factors affect the interest rate on a commercial mortgage?
Several factors affect the rate, including:
Loan type and purpose
Loan-to-value ratio (LTV)
Creditworthiness of the borrower
Property type and location
What is the difference between residential and commercial mortgages?
While both involve borrowing money for property, residential and commercial real estate loans have key differences.
Loan Focus: Residential loans prioritize borrower income and employment history. Commercial loans focus on the property’s income generation (recurring revenue, NOI, cap rate) or the business’s financial health and availability of free cash flow to repay the proposed loan.
Loan Terms: Commercial loans often have shorter terms compared to the typical 30-year fixed-rate residential mortgage. Features like balloon payments and prepayment penalties are more common.
Borrower Type: Residential loans are for individuals. Commercial loans are for business entities like LLCs, LLPs, and Corporations. Individuals might get financing for small properties (duplexes) but it’s not considered a true commercial loan.
Does INSIGNIA Financial Services have a minimum loan size?
INSIGNIA Financial Services offers loans for commercial real estate starting at $100,000.
Does INSIGNIA Financial Services have a maximum loan size?
INSIGNIA Financial Services arranges financing for commercial real estate with no maximum loan size.
However, certain government guaranteed loan programs such as SBA loans, USDA loans, and HUD FHA loans do have statutory loan size limits.
Get in touch us for more information concerning your specific needs.
Do you provide financing to Foreign National borrowers?
Yes. INSIGNIA Financial Services arranges financing for foreign national borrowers purchasing or refinancing commercial property in the United States.
Get in touch us for more information concerning your specific needs.
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The team at INSIGNIA Financial Services is available to discuss your financing objectives and answer any questions you may have.
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