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January 21, 2023

You may be surprised to learn that AAFMAA Mortgage Services LLC (AMS) funds and services commercial real estate (CRE) loans, and that our CRE loan borrowers do not need to be AAFMAA Members or to have served in the military.

CRE financing is used to purchase, build, renovate or refinance income-producing properties, such as:

  • Offices
  • Industrial spaces
  • Retail spaces
  • Hotels
  • Multifamily properties
  • Mixed-use properties

“Relationship Lending” Makes a Difference

“AMS offers our commercial clients four main advantages,” says Matt Watson, Commercial Portfolio Manager: “relationships, flexibility, speed and cost.”

“We’re not a traditional commercial bank. We lend based on relationships we currently have or will have,” he explains. That means each client’s loan is based on individual factors, not rigid lending guidelines, he adds. 

“We work with a select group of people who tend to deal with us on a consistent basis. They know us, we know them. They know the expectations. It's a win-win relationship and we can be flexible in who we work with and how much we lend them,” Watson says.

AMS can approve loans faster than many commercial lenders, which is a real plus for CRE borrowers. “Most commercial loans are approved and out the door in two to four weeks,” he says. “With other lenders, that could take months.”

The biggest difference from a financial perspective, notes Watson, is that the loans are also structured with no prepayment premiums in the event of a sale to a bona fide third party and no debt service coverage or occupancy rate covenants. “When borrowers do an analysis to compare our loans with those from other lenders, it's important they take into account the actual effective annual percentage rate (APR), which incorporates all of the upfront fees the other lenders charge,” says Watson. AMS only charges a Commitment Fee to cover overhead costs associated with underwriting the loan.

A One-of-a-Kind Lender

Commercial loans from AMS are managed uniquely, too, Watson notes. “We touch base with each client every month to check on their progress. That allows us to see how the investment is shaping up and if we can help them in any other way.”

“The other nice thing is we're able to accept alternative documentation to meet the underwriting standards,” says Jeff Havener, President of AMS. “We don't need to get bogged down with personal financials, credit scores, or anything like that, because at the end of the day, none of it's going to matter. It matters what the collateral is, and the income-producing nature of that collateral.”

That’s advantageous because projects often require changes in the original loan terms as they progress. “We're able to accommodate those changes quickly,” he says, “whereas other commercial lenders could take months to renegotiate and fund a new loan.” 

For more information, visit or call 844-422-3622.