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Commercial Mortgage
Traditional long-term financing for stabilized commercial properties
Conventional commercial mortgages provide long-term financing for stabilized, income-producing commercial properties. Offered by banks, credit unions, and institutional lenders with competitive rates for qualified borrowers and properties.
Find Commercial Mortgage Lenders →Loan Range
$250K – $50M
Typical Rate
6% - 8%
Down Payment
20-30%
Term
5-30 years (often 5-10 year terms with 25-30 year amortization)
Closing Time
30-60 days
🎯 Best For
- • Stabilized income properties
- • Long-term holds
- • Refinancing
- • Experienced investors
✅ Advantages
- ✓ Lower rates than bridge/hard money
- ✓ Longer terms
- ✓ Predictable payments
- ✓ Build equity over time
⚠️ Considerations
- • Stricter underwriting
- • Longer closing timeline
- • Prepayment penalties
- • Recourse may be required
Commercial Mortgage Loan Requirements
- ✓ Stabilized property with income history
- ✓ DSCR ≥ 1.20-1.25
- ✓ LTV ≤ 75-80%
- ✓ Borrower experience and liquidity
Commercial Mortgage FAQ
What's the difference between a commercial mortgage and a residential mortgage? ▼
Commercial mortgages are for income-producing properties (5+ units, office, retail, etc.). They're underwritten primarily on the property's income, not the borrower's personal income. Terms are typically shorter with balloon payments.
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