Commercial Real Estate Loans

When it comes to financing the construction, purchase or refinancing of owner-occupied properties, mobank is here to help. We also work closely with local Heartland Business Capital to offer SBA 504 Loans.

Construction loans

During construction, we can help you finance it as it happens. Borrow only what you need, when you need it – and when you need more, submit a draw request. Once reviewed, mobank advances on the request to pay your contractors. Simple.

  • Floating interest rate
  • Use for real estate construction or renovation
  • Interest-only payments during construction reduce debt service requirements

Real estate term loans

Purchase or refinance a piece of real estate with a real estate term loan. A conventional real estate loan will provide financing up to 80% of the market value of the property.

  • Maturity of three to five years
  • Equal monthly payments
  • Amortization of up to 20 years
  • Fixed interest rates available

The SBA's 504 loan program

This program is used to fund small businesses making fixed-asset investments from $120,000 to several million dollars in order to create or retain jobs. mobank works closely with local economic development corporations to offer SBA 504 loans to qualified borrowers. Providing long-term financing at a fixed interest rate and with a low down payment – typically around 10% – the program offers loans that can be used for fixed assets, including:

  • Land acquisition/construction
  • Purchase/remodeling of an existing building
  • Purchase/repair of machinery and equipment

SBA 504 loans for real estate are structured as follows:

  • mobank provides 50% of the financing for at least 10 years, amortized up to 20 years at market interest rate
  • SBA provides 40% of financing for a 10- or 20-year term and amortization with a fixed interest rate determined at the time of funding
  • Borrower contributes the remaining 10%
  • Bank has a first collateral position followed by the SBA