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Investor Loans in Commerce
Commerce sits at the crossroads of multiple LA freeways, making it prime territory for investors targeting industrial tenants and logistics workers. Properties here rent fast when priced right.
The city's mix of older multifamily buildings and commercial conversions creates opportunities that traditional W-2 loan programs won't touch. That's where investor financing shines.
Most investor loans in Commerce qualify you based on the property's rental income, not your W-2. If the property generates enough cash flow to cover the mortgage, you can qualify even with complex tax returns.
Expect to put down 20-25% for single-family rentals, 25-30% for multifamily. Credit requirements start at 640 for DSCR loans, but we've placed borrowers at 600 with strong rental history.
Commerce deals typically need non-QM lenders who understand LA County's rental dynamics. We work with 40+ investor-focused lenders who price based on rent rolls, not paystubs.
Some lenders cap loan amounts at certain thresholds. Others won't touch mixed-use properties. Shopping across our network finds you the lender that prices your specific deal best.
Commerce investors often get tripped up by zoning. A property showing as residential might have commercial restrictions that kill conventional financing. We catch these issues before you waste time on applications.
The best Commerce deals right now are older fourplexes near the Metrolink station. Rents are climbing as transit access becomes more valuable, but many sellers still price like it's 2019.
DSCR loans work for stabilized rentals with existing tenants. Hard money fits fix-and-flip projects you'll refinance within 12 months. Bridge loans cover the gap when you need fast funding before permanent financing.
Interest-only loans make sense when you're banking on appreciation over cash flow. Most Commerce investors choose DSCR products because they prioritize monthly cash flow over equity buildup.
Commerce's proximity to Vernon's industrial corridor means your tenant pool includes warehouse workers, logistics staff, and light manufacturing employees. These renters prioritize location over luxury finishes.
LA County transfer taxes and Commerce's specific permit requirements add costs that coastal investors miss. Budget an extra $8,000-$12,000 in closing costs versus what you'd pay in Orange County.
Yes, most DSCR lenders allow LLC ownership. Some charge 0.125-0.25% higher rates for entity vesting versus personal name.
Minimum 1.0 DSCR for most programs, meaning rent covers the mortgage payment. Better rates start at 1.25 DSCR and improve as ratio climbs.
Expect 6-12 months of mortgage payments in reserves. More properties in your portfolio means higher reserve requirements from most lenders.
Some lenders allow market rent appraisals on vacant units. Others require 3-6 months of actual rent collection before refinancing into better terms.
DSCR loans typically close in 21-30 days. Hard money can fund in 7-10 days when you need speed on competitive deals.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.