Commercial Loans
"Financing for business properties."
Office buildings, retail centers, industrial properties, and multi-family 5+ units. Commercial financing for serious investors.
20-30%
Min Down
680+
Min Credit
$10M+
Max Loan
Commercial Loans Benefits
Everything you need to know about your benefits
$10M+ Loan Amounts
Large-scale financing for significant commercial investments
Multiple Property Types
Office, retail, industrial, and multi-family all under one roof
Cash Flow Focused
Underwriting prioritizes property income over personal income
Flexible Terms
5, 7, or 10-year terms with 20-30 year amortization
Tenant Income
Strong tenants and leases improve loan terms
Entity Ownership
Hold in LLC, LP, or corporation for asset protection
How It Works
Your path to homeownership in just a few simple steps
Identify the Property
Find a stabilized commercial property with strong income and tenants.
Analyze the Numbers
Review NOI, cap rate, DSCR, and expense ratios to ensure cash flow.
Submit Package
Provide property financials, rent rolls, and borrower financial statements.
Commercial Underwriting
Lender reviews property income, tenant quality, and borrower strength.
Identify the Property
Find a stabilized commercial property with strong income and tenants.
Analyze the Numbers
Review NOI, cap rate, DSCR, and expense ratios to ensure cash flow.
Submit Package
Provide property financials, rent rolls, and borrower financial statements.
Commercial Underwriting
Lender reviews property income, tenant quality, and borrower strength.
Close and Operate
Complete purchase and manage your commercial investment.
Types of Commercial Loans
Choose the option that fits your situation
Office
Professional buildings, medical office, mixed-use with office components
Retail
Strip centers, single-tenant buildings, shopping centers
Industrial
Warehouses, manufacturing facilities, flex space
Multi-Family 5+
Apartment buildings, student housing, senior housing
Things to Consider
A reverse mortgage is a significant financial decision. Here's what you should understand before proceeding.
Property Income is Key
Commercial underwriting focuses heavily on NOI, DSCR, and cap rate. Strong tenant leases and stable income are essential.
Balloon Payment Structure
Unlike residential 30-year fixed loans, commercial loans typically have 5-10 year terms with a balloon payment or refinance required.
Borrower Strength Matters
Lenders evaluate your net worth, liquidity, and experience in addition to property financials. Strong borrowers get better terms.
Recourse vs. Non-Recourse
Some commercial loans are non-recourse (property is only collateral), while others require personal guarantees. Larger loans may offer non-recourse.
HUD-approved counseling is required to ensure you fully understand these factors before proceeding.
Understanding Cap Rate
How investors evaluate commercial property value and returns
The Formula
Cap Rate = Net Operating Income (NOI) ÷ Purchase Price
Example Calculation:
Net Operating Income
$250,000
Purchase Price
$3,125,000
Cap Rate Result
8.0%
What Cap Rate Tells You
Cap rate measures the relationship between a commercial property income and its purchase price. Different property types command different cap rates based on tenant stability, lease terms, and market demand.
Higher Cap Rate (7%+)
Higher potential returns, but often indicates older properties, less desirable locations, or higher vacancy risk.
Lower Cap Rate (4-6%)
Lower immediate returns, but typically premium locations, newer properties, and more stable income.
Important: Cap rate alone doesn't determine a good investment. Always consider location, tenant quality, property condition, and market trends.
Market Cap Rates by Property Type
Typical ranges vary by property class and location (2024 averages)
Class A Office
Cap Rate Range
5.5% – 7.5%
Class B/C Office
Cap Rate Range
7.0% – 10.0%
Single-Tenant Retail (NNN)
Cap Rate Range
5.0% – 7.0%
Strip Center Retail
Cap Rate Range
6.5% – 9.0%
Industrial/Warehouse
Cap Rate Range
5.0% – 7.0%
Mixed-Use
Cap Rate Range
6.0% – 8.5%
* Cap rates vary significantly by market, property condition, and economic conditions. These are national averages for reference only.
Loan Details
Documentation Required
- Property financials (P&L, rent roll)
- Current lease agreements
- Borrower personal financial statement
- 2-3 years tax returns (personal and entity)
- Entity documents (operating agreement, articles)
- Property appraisal (commercial)
Eligible Property Types
- Office buildings
- Retail centers and strip malls
- Industrial warehouses and flex space
- Multi-family apartments (5+ units)
- Mixed-use commercial/residential
Additional Info
- Stabilized properties preferred
- Minimum DSCR typically 1.20-1.25
- Entity ownership required
- Environmental review may be required
Commercial vs. Residential Loans
| Feature | Commercial(This loan) | Residential Investment |
|---|---|---|
| Primary Focus | Property income (NOI, cap rate) | Borrower income (DTI, W-2s) |
| Loan Terms | 5-10 year balloons | 30-year fixed available |
| Down Payment | 20-30% | 15-25% |
| Amortization | 20-30 years | 30 years |
| Rate Structure | Often adjustable after term | Fixed or ARM options |
| Entity Ownership | Required (LLC, LP, Corp) | Optional (personal common) |
| Property Size | 5+ units, commercial use | 1-4 units only |
* Rates and terms subject to change. Contact us for current offers.
Frequently Asked Questions
Common questions about Commercial Loans
Last updated:
What's the difference between commercial and residential loans?
Commercial loans focus on property income (NOI, cap rate, DSCR) rather than borrower income. They have shorter terms (5-10 years vs 30), require entity ownership, and involve more detailed property underwriting.
What property types qualify for commercial financing?
Office buildings, retail centers, industrial properties (warehouses, manufacturing), and multi-family with 5+ units. Mixed-use properties with commercial components also qualify.
How does commercial loan amortization work?
Commercial loans typically have 20-30 year amortization schedules but 5-10 year terms. After the term, you'll need to refinance or pay the balloon balance. This is different from residential 30-year fully amortizing loans.
- Debt Service Coverage Ratio measures if property income covers the loan payment. Most commercial lenders require 1.20-1.25x DSCR (property income is 120-125% of the payment).
- Yes, commercial lenders typically require entity ownership (LLC, LP, or corporation). This provides liability protection and is standard practice for commercial real estate.
- Lenders typically want to see net worth equal to the loan amount and liquidity (cash reserves) of 6-12 months of payments. Strong borrowers may qualify for better rates and terms.
Get Rate Drop Alerts
We'll notify you instantly when rates drop to your target.
Ready to Finance Your Commercial Property?
Let's review your property and structure the right loan
Or call us directly: (757) 558-2603