Nancy Bachety it really all depends on what type of commercial property, who will be occupying it, and what your overall strategy is (I.e renting or flipping) the mortgage banks and lenders have a lot of alternative underwriting programs that give a lot of flexibility. For example some banks will underwrite the income based solely on 75% of the rental income (potential or current) that property produces. If you can fit those guidelines or any other guidelines of program these conventional banks offer, it is always best to stick with conventional lenders as they specialize in these and compete with each other for the business. However sometimes you may have a commercial property deal for which you might have to go to your local community bank or a private lender who can customize their underwriting standards for you. Unfortunately once you run into these cases pricing is higher as they are offering you something customized and possibly even riskier for them.
These are just my opinions, others might feel differently. It's always best to speak to a lot of different people and come to a conclusion that makes more sense to you. Which is why the BP community is a great resource to all of us.
