What is a Commercial Real Estate Loan?
Commercial property is one of the few assets that actually makes your financing cheaper. The building itself backs the loan, so lenders compete harder for these deals and offer better terms than unsecured options. Right now, conventional CRE rates start in the low 5% range for strong borrowers, and SBA 504 loans for owner-occupied properties sit even lower.
Buying, expanding, or refinancing commercial real estate means navigating appraisals, environmental reviews, title work, and down payments of 10% to 30%. None of that moves on its own. Our lending partners specialize in structuring deals that close, and our team handles the coordination so nothing falls through the cracks.
How do I qualify for a Commercial Real Estate Loan?
Key qualification requirements:
Credit Score
680 or above on personal credit, required by most commercial real estate lenders.
Down Payment
10% to 30% of the purchase price. Owner-occupied properties sit at the lower end of that range.
Business Financials
Tax returns, profit and loss statements, and cash flow projections for the business and the property.
Property Appraisal
A professional appraisal is required to confirm the property's current market value.
Property Type
Office, retail, industrial, warehouse, or mixed-use. The property must serve a commercial purpose.
Debt Service Coverage
Most lenders require a DSCR of 1.25 or higher, meaning the property's income covers 125% of the loan payment.
Current Commercial Real Estate Rates
Rates as of April 2026. Actual rates depend on property type, LTV, borrower credit, and loan structure.
| Property Type | Starting Rate | Typical LTV | Terms |
|---|---|---|---|
| Multifamily (5+ units, >$6M) | 5.16% | Up to 80% | 5 - 30 years |
| Multifamily (5+ units, <$6M) | 5.60% | Up to 80% | 5 - 30 years |
| Owner-Occupied (SBA 504) | ~5.14% | Up to 90% | 20 - 25 years |
| Retail / Office | 6.07% | Up to 75% | 5 - 20 years |
| Industrial / Warehouse | 5.75% | Up to 75% | 5 - 20 years |
| Mixed-Use | 6.25% | Up to 75% | 5 - 20 years |
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