Commercial Mortgage Loan Rates

* Rates may vary: loan quotes depend on several underwriting factors including the property and borrower location, loan-to-value (LTV), debt service coverage ratio (DSCR), property usage (investment or owner-occupied), property type, and the borrower’s financial strength. The interest rates displayed should be considered indicative for properties in primary markets with good LTVs and DSCRs, as well as a strong and experienced sponsor.

Loan Process

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Permanent Loans

What it is:

Permanent loans are the most common type of loan on commercial real estate. Whether a purchase or refinance loan, they are a first mortgage on a commercial property. A permanent loan must have some amortization and a term of at least five years.

Who it’s for:

Commercial real estate (CRE) refers to any income-producing real estate that is used for business purposes; for example, offices, retail, hotels, and apartments.

Bridge Loans

What it is:

Also known as interim financing, gap financing, or swing loans, bridge loans are short-term (1-5 years) and bridge the gap during times when permanent financing is needed but not yet available. They are interest-only loans. These loans can usually be funded in less than 30 days.

Who it’s for:

Anyone who needs to meet current obligations by providing immediate cash flow secured by commercial real estate. They may be used for any purpose.

SBA Loans

What it is:

The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. It is an excellent financing tool for those who want to start a new business, expand an established business, or buy an existing business. It typically offers longer, more flexible terms and lower equity contributions than many other conventional loan programs.

Who it’s for:

This is the best option when real estate is part of a business purchase, but it can also be used for:

          * Short- and long-term working capital
          * Refinance current business debt
          * Purchase furniture, fixtures, and supplies

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs.