A “Perm Loan” is a type of permanent loan used to purchase or refinance commercial property with set loan terms for repayment. New commercial property may typically benefit from a construction-to-permanent loan, and unlike a construction loan, the permanent financing in those commercial loans keep interest-only payments at a locked rate through the permanent phase, when the building itself has a value.

A Perm Loan is a great fit in the following situations:

• When you are looking to purchase or refinance a stabilized commercial property, typically well after the construction phase.
• When you need a longer-term type of financing solution (3, 5, 7 or 10 years) with predictable monthly payments.
• When you want competitive interest rates with more flexible terms than a traditional mortgage.