Bad credit commercial mortgage lenders—should you use one of these?

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Bad credit commercial mortgage lenders—should you use one of these?

(While the words ‘bad credit’ summon up all matters of negative images, these mortgage lenders are in business to assist customers who, for one reason or another, cannot go through the traditional lending process in order to obtain funding.)

This scenario is rather common, since bad credit is found across the country affects all types of people from the poorest to the richest (every week or two, it seems, some billionaire declares bankruptcy although it doesn’t seem to hurt them like it does the average person.) Would be borrowers fall into numerous categories that affect their getting mortgage funding. The most common among them are:

· The self-employed, particularly those with tax liens or judgments showing

· Past bankruptcies or having short sales in your in your financial history

· Borrowers with a slow payment history

· Borrowers who need debt consolidation due to many outstanding draining their cash flow

It is advisable when applying with this type of lender to go to the trouble of having your past credit problems documented and explained in detail since this information will aid you in approval. The lender wants to know for certain that the issue has been taken care of and is in the past.

Bad credit commercial mortgage lenders offer a large number of helpful services to their would-be clients. These can include lending that is not based on a FICO score, no minimum credit scores, consideration/understanding of past bankruptcies and judgments, terms for up to a 30-year period, loans with an LtV value of 75 percent and debt consolidation loans that can be easily approved.

These are all positive aspects of this type lending. When a bad credit commercial mortgage lenders’ requirement of less documentation and uncomplicated application process is thrown in with the usual practice of fast approvals and closings, the overal outlook is a good one. Not to mention a source of relief for the borrower who has found that taking a friend’s advice sometime in the distant past and declaring bankruptcy was a decision that followed him throughout his life, it seemed, no matter what they did.

Bad credit currently shows up as factor not only in lending, but in applying for a job, renting an apartment and abstract things like setting up phone and cable tv services.

You will pay more using these type of lenders—the more risk they feel they are taking, the higher interest rate they will charge you. Some business loans are tied to your personal credit and you may be asked to ‘guarantee’ the funding. Failure to repay or missed/late payments will reflect on your both your personal and business credit in this instance.

Do not let a negative phrase throw you—most of the time these loans are termed No Credit Check loans in advertisements. Use the Internet to find those lenders who are best reviewed, talk to friends and colleagues whom you trust and use this knowledge, along with your own intuition, to find out if a bad credit commercial mortgage lender can help you with your business funding.



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO


NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701  

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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