Overview
Commercial real estate loans help you buy, build, or refinance business property: offices, warehouses, retail spaces, mixed-use buildings. The property itself serves as collateral, which means lenders can offer larger amounts and better rates than unsecured financing.
These are big deals with serious due diligence: appraisals, environmental assessments, strong credit requirements, and significant down payments (typically 10–30%). We work with lenders who specialize in commercial real estate and know how to structure deals that close.
How do I get one?
Key qualification requirements:
Property Type
The property must be a commercial real estate asset. Residential properties typically do not qualify unless they are intended for mixed-use, with significant commercial activity.
Business Purpose
The property must be used for business operations, such as offices, retail, or industrial use. Investment properties, where the primary intent is to rent out or sell the property, might have different loan options.
Good Credit
The business owner(s) generally need to have a solid credit history. Lenders want to see that the owner has a history of managing debts responsibly.
Down Payment
Borrowers typically need to provide a down payment, usually ranging from 10% to 30% of the property's purchase price. This shows the lender that the borrower is financially committed to the property.
Collateral
The real estate itself usually serves as collateral for the loan. This means that if the borrower defaults, the lender can foreclose on the property.
Ability to Repay
The business must demonstrate the ability to repay the loan, often by showing financial statements, income projections, and tax returns. The lender will assess the property's potential to generate income, especially if the loan is for a rental or leased property.
Environmental Assessments
For certain properties, lenders may require an environmental assessment to ensure there are no hazardous materials or other environmental issues that could affect the property's value.
Appraisal
Lenders typically require a professional appraisal to confirm the property's value, ensuring it justifies the loan amount.
Real Estate Loan Interest Rates
FAQ