Bank Said No? Property-Based Commercial & Investment Loans in Florida
Short answer
Yes. When a bank turns you down, a property-based (often called no-doc) private lender may still fund the deal. These business-purpose loans are underwritten mainly on the property’s value, condition and location rather than your credit or tax returns. Expect a lower loan-to-value (often around 50–65%), a higher rate than a bank, and a short interest-only term with a plan to refinance later.
We hear it every week: a solid investor or business owner, a good property, and a bank that said no. Maybe it was a credit issue, a complicated tax return, a new LLC, or a property type the bank doesn’t like. That’s not always the end of the deal.
How Property-Based Lending Works
Instead of underwriting you, these lenders underwrite the property:
- Value and equity: how much the property is worth and how much you’re putting in
- Condition: well-kept property with no major deferred maintenance
- Location: strong, non-rural locations; many avoid flood zones
- Curb appeal: a property that would sell or lease easily if it had to
Some programs check little or no credit and ask for no tax returns, bank statements or financial statements.
Typical Terms (Estimates)
| What’s common | |
|---|---|
| Loan-to-value | Often around 50%–65% |
| Term | Often 1–5 years, many interest-only |
| Rates and fees | Higher than bank loans; origination fees are common |
| Prepayment | Sometimes a short prepayment penalty in year one |
| Vesting | Usually an LLC or corporation |
| Cash-out | Allowed for business purposes |
Terms vary by lender and change often. Estimates based on the information provided; subject to credit approval and property review.
Property Types
- 1–4 unit residential investment property (not owner-occupied)
- Office, retail, multifamily, mixed-use and office-warehouse
- Owner-user commercial (your business occupies it) on some programs
- Foreign nationals are welcome on many programs
Use It as a Bridge
The best way to use a property-based loan is as a bridge: close the deal, fix what the bank didn’t like (credit, seasoning, financials or the property itself), then refinance into a lower-cost bank, SBA or DSCR loan. We plan that exit with you up front.
What to Send Us
- Property address, type and photos
- Purchase price or value, and the loan amount
- Purchase or refinance, and your timeline
- Why the bank said no (it helps us pick the right lender)
Related: Commercial mortgage loans (hub) · Hard money loans · Bridge loans · DSCR loans · Foreign national loans
Frequently Asked Questions
Can I get a commercial loan with bad credit?
Some property-based private lenders don’t use credit to decide. They lend mainly on the property’s value, condition and location, at a lower loan-to-value and a higher rate than a bank. Program guidelines apply.
What is a no-doc commercial loan?
A business-purpose loan where the lender doesn’t underwrite your income, tax returns or bank statements. The property is the main basis for the loan. You still need clear title, insurance and a property the lender likes.
How much can I borrow on a property-based loan?
Many property-based private lenders cap loans at roughly 50% to 65% of the property’s value. Larger down payments or more equity are the trade-off for less paperwork.
Are rates higher than a bank loan?
Yes. Private, property-based loans usually cost more than bank or agency loans, with origination fees and sometimes a short prepayment penalty. They are meant to be a bridge to better financing.
Can I use one for my primary home?
No. These are business-purpose loans for investment property and commercial property only, and most require the title to be held in an LLC or corporation.
What properties don’t qualify?
Many private lenders avoid rural property, flood zones, raw land and properties in poor condition. Location and curb appeal matter.
Talk to North Star
Call 904-880-6741, get a rate quote, or apply online. You talk to Nathan, not a call center.
North Star Mortgage Network, Inc. | Company NMLS #356789 | Nathan Young NMLS #325206 | 12058 San Jose Blvd, Suite 404, Jacksonville, FL 32223 | 904-880-6741 | Equal Housing Opportunity. Business-purpose loans for non-owner-occupied residential investment and commercial property. Rates, payments and terms are estimates based on the information provided and are subject to change. All loans subject to credit approval and property review. Available for qualified borrowers; program guidelines apply. Construction lending is not currently offered.
