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Various Sources for Commercial Real EstateLoans

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There are various sources for commercial real estate loans. They may include:

Portfolio Lenders

They’re often comprised of local and national banks, companies with a commercial lending division, and credit unions. They’re referred to as “portfolio lenders” because they keep the commercial loans they create on their balance sheet until their maturity.

Government Agency Lenders

There are some local and national banks that offer government-backed loans which are often pooled, securitized, and sold together to investors. Some companies are likewise approved to sell commercial loans that are funded by government agencies such as Freddie Mac and Fannie Mae.

CMBS Lenders

The commercial loans created by CMBS lenders are typically transferred to its trust. In effect, the trust then provides a series of bonds of varying yield, duration, and payment priority for investors to buy.

Insurance Companies

A lot of insurance companies nowadays have established a lending division mainly for commercial real estates. Unlike portfolio lenders, government agency lenders, and CMBS lenders, insurance companies can easily create more tailored loan packages.

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