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Overview of Savings Associations and Commercial Bank Corporate Real Estate Financing

Savings and loans associations exist primarily for granting mortgages on individual single family residential properties. These associations are called several names throughout the USA and depending on the area of the country; building and loan associations, cooperative banks, homestead associations, as well as savings associations. These make up the largest lenders to individuals looking to purchase single-family residences in the United States of America. The important factors of these institutions are that they are normally locally and privately owned and managed. They may be federally (state) chartered. They offer loans for all stages of single family dwellings from new construction, purchase of an existing home, repair of an existing home and even refinancing of a current home. They operate from the savings placed in their institutions by consumers and in turn make mortgages to want-to-be home owners.

Savings banks, banks that specialize in consumer deposits are federally chartered and can make individual residential home loans. Because they are focused on savings, they tend to have more funds available to make more home loan mortgages for individuals.

Commercial banks now offer more financing options for furnished apartments. They employ a staff of loan officers who specialize in real estate. They can offer both farm and residential mortgage loans. They also actively purchase mortgages from other mortgage bankers. Many banks now offer loans for more than just real estate property. They can give loans for automobiles, mobile homes and such, but their primary focus is on residential properties.

Qualifying for all of these institutions requires a credit check and a credit score of a good value. (Last check on this was a credit score of 660 or better.) Plus factor in the income / debt ratio in the qualifications. If all meet the criteria obtaining a loan from these should be fairly easy.