Everything you need to know about financing commercial real estate investments — loan types, qualification requirements, rate ranges, and how to apply online.
A commercial real estate loan finances income-producing property of 5+ residential units, retail, office, industrial, mixed-use, or hospitality. Most CRE loans require 25-30% down, 660+ credit, and 1.20x+ debt service coverage ratio (DSCR). Rates currently range 7-12% depending on loan type, with permanent loans at the low end and bridge or construction at the high end. Standard close timelines: 30-60 days for stabilized properties, 45-90 days for value-add or construction. Through a marketplace approach, investors compare 2-3 competing quotes from multiple capital sources rather than taking a single rate sheet. The right capital source for any given deal varies significantly by property type, borrower profile, and loan structure.
Commercial real estate (CRE) refers to property held for income-producing use, not personal residence. The main categories:
Residential investment property (1-4 units) is typically financed through DSCR or conventional investment programs, not commercial loans. The 5-unit threshold is the standard cutoff.
| Loan Type | Use Case | Typical Terms |
|---|---|---|
| Permanent (CRE) | Stabilized property, long-term hold | 5-10 year fixed, 20-30 year amortization, 70-75% LTV |
| Bridge | Acquisition, value-add, transitional | 12-24 months, interest-only, 65-75% LTV |
| Construction | Ground-up commercial build | 12-36 months, interest-only during build, 70-80% LTC |
| SBA 7(a) | Owner-occupied or small CRE | 10-25 year amortization, 90% LTV, government-backed |
| SBA 504 | Owner-occupied CRE for businesses | 10-25 year, 90% LTV, lower rates than 7(a) |
| CMBS | Large stabilized CRE ($2M+) | 5-10 year terms, non-recourse, fixed rate |
| Agency (Fannie/Freddie) | Multifamily 5+ units | Best multifamily rates, 30-year amortization |
Commercial loans evaluate the property as the primary repayment source, with the borrower as backup. Key qualification factors:
Commercial rates vary by loan type, property type, and borrower profile. Current ranges:
| Loan Type | Typical Rate Range | Points |
|---|---|---|
| Permanent CRE (5-yr fixed) | 7.0% - 8.5% | 0.5 - 1.5 |
| Permanent CRE (10-yr fixed) | 7.5% - 9.0% | 0.5 - 1.5 |
| Bridge CRE | 9.5% - 12% | 2 - 3 |
| CRE Construction | 9% - 11% | 2 - 3 |
| SBA 7(a) (variable) | Prime + 2.0% - 2.75% | 0 - 3 |
| SBA 504 (fixed portion) | 5.5% - 6.5% | 1.5% one-time |
| Multifamily Agency | 6.5% - 8% | 0.5 - 1.5 |
Rates depend heavily on borrower credit, property type, and current market conditions. Marketplace placement (running your scenario across multiple sources) typically saves 25-75 basis points vs. taking the first quote.
Online application has streamlined commercial lending significantly. Through LendingStreet's marketplace:
Online application doesn't skip diligence — it streamlines the matching step. The right capital source for your specific scenario varies significantly. Marketplace placement makes that match efficiently.
Yes. Online application takes about 10 minutes and provides matched quotes within 24-72 hours through LendingStreet's marketplace of 30+ capital sources. The application covers property type, loan amount, borrower profile, and intended use.
660 minimum for most institutional programs; 680+ for best rates. SBA loans can accept 640. Some specialty programs through our marketplace accept 620 with compensating factors.
Standard commercial loans require 25-30% down (70-75% LTV). SBA programs can fund 90% LTV. Construction loans typically require 20-30% borrower equity.
30-60 days for stabilized property purchase/refi; 45-90 days for value-add or construction. Some bridge programs close in 14-21 days for speed-sensitive deals.
Most commercial loans require personal guarantees from principals (typically anyone with 20%+ ownership). Some non-recourse programs exist (CMBS, agency multifamily) but require larger deals.
Most institutional commercial programs start at $500K. SBA can fund smaller commercial deals ($100K+). Larger CMBS programs typically require $2M+.
Yes, through specialty programs. Foreign national CRE financing typically requires larger down payment (30-40%), proof of foreign income or US-based reserves, and a US business entity.