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CMBS Loans
Securitized commercial mortgages for larger properties
Commercial Mortgage-Backed Securities (CMBS) loans are commercial mortgages that are pooled together and sold as bonds to investors. They offer competitive rates and non-recourse terms for larger stabilized properties, typically $2M and above.
Find CMBS Lenders →Loan Range
$2000K – $500M
Typical Rate
5.5% - 8%
Down Payment
25-35%
Term
5-10 years (25-30 year amortization)
Closing Time
45-90 days
🎯 Best For
- • Large stabilized properties
- • Borrowers wanting non-recourse
- • Properties in major markets
- • Long-term investors
✅ Advantages
- ✓ Non-recourse (no personal guarantee)
- ✓ Competitive rates
- ✓ Higher leverage possible
- ✓ Rate lock at application
⚠️ Considerations
- • Inflexible after closing
- • Expensive prepayment (defeasance/yield maintenance)
- • Cannot modify property or lease without servicer approval
- • Minimum loan size $2M+
CMBS Loan Requirements
- ✓ Stabilized property
- ✓ DSCR ≥ 1.25
- ✓ LTV ≤ 75%
- ✓ Property in acceptable market
- ✓ No major deferred maintenance
CMBS Loans FAQ
What does non-recourse mean? ▼
Non-recourse means the lender can only go after the property if you default — not your personal assets. CMBS loans are typically non-recourse with standard 'bad boy' carve-outs for fraud, misrepresentation, or environmental issues.
Can I pay off a CMBS loan early? ▼
Yes, but it's expensive. CMBS loans use defeasance or yield maintenance for prepayment, which can cost hundreds of thousands of dollars. Plan to hold through the full term.
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