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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.

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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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