What is a gas station loan?
Gas stations are a type of retail property that resides under the larger umbrella of commercial properties. Lenders offer gas station loans for purchase, refinance and refinance with cash-out. Gas stations with convenience stores or truck stops are included in this property type. An array of non-bank lenders, credit unions and banks offer gas station financing, with purchase mortgages that requires as little as 10% down. Cash-out refinancing that can provide capital for a borrower to make repairs or improvements are also available.
Gas station financing can be used for any of the following purposes:
- Refinance to get cash out of the property
- Acquisition and development
- Construction or building
- Rehab and/or remodel
What are some common types of gas station loans?
- No credit needed
- Real estate only starting at $1,000,000
- Gas combo with auto body, repair and/or sales allowed
- Loans starting at $100,000
- Branded and franchise gas station loans
- Three to 18-month loans from $400,000 to $5,000,000
- Construction up to $5,000,000 for owner-occupied gas station
- Funding in 5-7 days from LOI
- No upfront fees
- Up to 85% LTV for start-up
- SBA 7(a)
- SBA 504
- USDA B & I
- Purchase or refinance of machinery and equipment
- Stated income and low doc loans
- Asset-based direct private money
- Refinance rate and term
- Bridge loan to permanent financing
- Cash-out refinance for expansion
- 12 months interest only starting at 11%
How do I get financing for a gas station?
Borrowers seeking a gas station loan can apply with a private lender, bank, credit union or hard money lender. For the lowest interest rate, borrowers are usually required to provide full documentation, as well as an appraisal. When borrowers need a loan fast, they should consider no- or low-documentation loan, based on their equity in the property. These loans generally have LTVs around 55-65% and can close in less than two weeks. Gas station loans and gas station convenience store financing often takes the first position lien, but some lenders offer second mortgages as a way for borrowers to acquire capital for improvements, such as remodels, expansion and landscaping.
Use LenderSearch.com to find the best lender for your client’s unique situation.
If you’re an owner or manager of a gas station you might want to find a commercial mortgage broker to assist you. All the lenders on LenderSearch.com work with mortgage brokers to fund their client’s loan request.
What is a gas station hard money loan?
Hard money or private money loans often offer fast funding at lower LTVs and require less documentation from the borrower than a bank would require. As such, borrowers should direct their inquiries to non-banks and private lenders that can accommodate a broader range of scenarios than banks offering conventional loans. These lenders can work with FICO scores as low as 500 and are able to accept bank statements, instead of tax returns, to prove the ability of a borrower to repay the loan. In fact, some lenders can fund a loan with only stated income and sufficient owner equity in the property. In exchange for the relaxed documentation requirements, the hard money loans will have a high interest rate and will have to be repaid over a shorter period of time. Hard money loans are equity based, meaning that LTVs of 50% to 65% are common.
Which lenders offer financing for gas stations?
Borrowers can choose from dozens of banks, private lenders and non-banks for car wash financing. These lenders also offer gas station convenience store financing and gas station rest stop loans. Use LenderSearch.com to find funding for a gas station loan.