Lease doc loan

A "lease doc commercial loan" generally refers to a commercial loan that is underwritten with a simplified or alternative documentation process, often referred to as "lease doc." This type of loan is commonly used for commercial real estate financing.

Here are the key features of a lease doc commercial loan:

1. Documentation Requirements: The term "lease doc" implies that the documentation required for this type of loan is less extensive compared to traditional commercial loans. Instead of providing a comprehensive set of financial statements, tax returns, and other detailed documentation, borrowers may need to submit lease-related documents.

2. Emphasis on Lease Income:  Lenders focus on the income generated from the property's leases as a primary factor in evaluating the loan. This is particularly relevant for commercial properties where rental income plays a crucial role in determining the property's value and the borrower's ability to repay the loan.

3. Commercial Property Financing: These loans are typically used for financing commercial properties such as office buildings, retail spaces, warehouses, or other income-generating real estate.

4. Streamlined Approval Process: The goal of lease doc loans is to simplify the loan approval process, making it more accessible for borrowers who may not have the extensive financial documentation typically required for traditional commercial loans.

5. Interest Rates and Terms: Interest rates and loan terms can vary based on the lender, borrower's creditworthiness, and the specific details of the property and lease agreements. Interest rates may be slightly higher than traditional loans due to the simplified documentation process.

It's important to note that while lease doc commercial loans provide a more streamlined process, borrowers should still expect to provide essential information about the property, its leases, and their financial standing. Additionally, the availability and terms of such loans can vary among lenders, so it's advisable to shop around and compare offers to find the best fit for your commercial financing needs. 

Consulting with a commercial mortgage broker or financial broker can also be helpful in navigating the process.