topic Which Score used for Commercial Loan? in Mortgage Loans

Which Score used for Commercial Loan?

Anonymous — Thu, 10 May 2018 18:54:23 GMT

Hey Folks,

Would anyone happen to know which scores are generally looked at for commercial real estate lending? Specifically, for becoming the guarentor of a commecial loan involving real estate where the borrower is an LLC?

I had thought it was Mortgage scores, but someone recently told me they look at 'personal' credit scores for becoming a guarentor, which I assume would mean FICO 8? ANyone know for sure?

Re: Which Score used for Commercial Loan?

ShanetheMortgageMan — Thu, 10 May 2018 19:01:16 GMT

Same scores as for a residential mortgage, the 5/4/2's. When qualifying for commerical, the property itself needs to qualify but they also do a "global" analysis on the guarantor/borrower, which is why your personal finances/debts/credit scores still can factor into the commercial mortgage underwriting decision. For example, if there is a great cashflowing commercial property, but the borrower is up to their eyeballs in debt, it will have a lesser chance of working out.