Investing in commercial real estate is a different process than buying a home. The properties are larger, the loans are more complex, and the approval process is built around how the property performs, not just who the borrower is. Commercial loans are designed to help investors finance income-producing properties such as apartment buildings, retail centers, office spaces, warehouses, and mixed-use developments. Whether you are acquiring your first commercial property or expanding a portfolio, we can help you find a loan structure that works for your deal.
WHAT IS A COMMERCIAL LOAN?
A commercial loan is a mortgage used to purchase, refinance, or develop real estate that is not primarily residential. These loans are used to finance properties that generate income, including multi-family apartment buildings with five or more units, retail storefronts, office buildings, industrial properties, self-storage facilities, and mixed-use developments.
Commercial loans are structured differently than residential mortgages. Loan terms, amortization periods, and interest rate structures vary widely. Approval is based on a combination of factors including the property income, the borrower’s financial position, and the strength of the deal itself. There is no one-size-fits-all approach in commercial lending.
As a mortgage broker, we work with a network of commercial lenders to find the structure that fits your specific property type and investment goals.
KEY BENEFITS
- Financing available for a wide range of income-producing property types
- Loan structures tailored to the property and the investor’s strategy
- Access to multiple commercial lenders through one broker relationship
- Options for both purchase and refinance, including cash-out
- Works for individual investors, LLCs, and corporate entities
- Can be used to acquire, develop, or reposition commercial real estate
- Longer amortization periods available on many programs
HOW IT WORKS
- You share details about the property you want to finance and your investment objectives.
- Your loan officer reviews the property type, income, and your financial profile to identify suitable loan options.
- The property is appraised and underwritten based on its income potential, value, and market conditions.
- A term sheet is presented outlining the loan structure, interest rate, and repayment terms.
- Once terms are accepted, the loan moves to processing, underwriting, and closing.
You can use our mortgage calculator to get a general estimate of costs and monthly obligations as you evaluate your options.
WHO THIS LOAN IS BEST FOR
- Investors purchasing apartment buildings with five or more units
- Buyers acquiring retail, office, warehouse, or mixed-use properties
- Real estate investors looking to refinance and extract equity from commercial holdings
- Developers financing ground-up construction of commercial properties
- Business owners purchasing the building where they operate
- Investors expanding a commercial real estate portfolio
BASIC REQUIREMENTS
Commercial loan requirements vary significantly based on property type, loan size, and lender. The following is a general overview:
- Loan amounts typically start at $500,000 and can range into the tens of millions
- Down payment or equity requirements typically 20 to 35 percent
- Property income and net operating income are key underwriting factors
- Borrower financial statements and credit history reviewed alongside property data
- Debt service coverage ratio typically required to be 1.20 or higher
- Personal or corporate guarantees may be required depending on the program
- Environmental assessments and property inspections are standard