How large of a down payment is required for a commercial real estate purchase?

The down payment required for commercial real estate purchases in Minnesota will vary depending on the size of the property and the type of loan you are taking out. Generally, commercial real estate lenders in Minnesota require a down payment of at least 20-25%. The down payment amount will also depend on the lender’s criteria. Some lenders may require a larger down payment for certain types of properties or in certain areas. When you are taking out a loan to purchase commercial real estate in Minnesota, you should also consider other closing costs such as title fees, attorney’s fees, appraisal fees, title insurance, survey costs, and other miscellaneous expenses. For most commercial real estate purchases, you can expect to pay around 5% of the purchase price up front for closing costs. If you are putting less than 20-25% down when you are purchasing a commercial real estate in Minnesota, you may also be subject to private mortgage insurance (PMI). PMI is an extra cost that lenders require you to pay if you are not putting enough money down. PMI is typically a monthly fee that adds to the loan payment. The amount of money you need to put down for a commercial real estate purchase in Minnesota will vary depending on the size and type of property you are purchasing as well as the lender’s criteria. Make sure you understand all of the costs and fees associated with purchasing a commercial real estate before you make an offer.

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How large of a down payment is required for a commercial real estate purchase?

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