Commercial Loans
Commercial Financing Structured With the End In Sight
Whether you're financing a property for your business or growing an investment portfolio, we'll help you identify financing options that support your plans.
Commercial Real Estate Financing
Each commercial loan scenario is unique. We take a look at the property, financial package, and timeline to help you navigate available options and determine the best path forward.
Owner-Occupied Commercial
Owner-occupied commercial loans are designed for business owners who want to purchase the property they operate out of. These loans are time intensive; meaning they can take 60-90 days or longer depending on the complexity of the transaction.
Ideal For
Business owners looking to purchase or refinance the property they operate from.
Key Financing Details
- Loan-to-value up to 90% with SBA financing, with higher leverage options in certain structures
- Owner-occupied typically requires 51% or more occupancy, with some flexibility depending on the lender
- Loan terms vary depending on your goal and loan program; 3, 5, 7, 10, 15, 20, or 25 year terms are typical, with the loan amortized over 20 or 25 years
- Most commercial loans have a prepayment penalty which will depend on the loan term and lender. SBA typically has 3%, 2%, 1% (of the loan amount) step down prepay for the first three years
- Fixed and adjustable rate options available
Non-owner Occupied Commercial Loans
Investor commercial loans are designed for real estate investors acquiring or refinancing income-producing commercial properties. These loans are typically structured around the property's cash flow and sometimes the financial strength of the owner(s).
Ideal For
Real estate investors looking to acquire or refinance commercial income-producing properties.
Key Financing Details
- Loan to Value (LTV) up to 70%, maybe 60% depending on the property type, location, and cash flow
- Typically viewed as higher risk than owner-occupied loans, as they are primarily supported by property income rather than business operating revenue
- Available across a range of commercial asset types, including office, retail, industrial, and warehouse properties
- Loan terms are similar to owner-occupied financing, often structured with shorter periods such as 3, 5, 7 years, and amortizations of up to 25 or 30 years
- Purchase and refinance options available
Multi-Family (5+ Units)
Multi-family financing for properties with five or more units is handled differently than residential lending. These loans are primarily based on the property's income, occupancy, and other variables. Options vary depending on the asset and sometimes the borrower's experience.
Ideal For
Investors purchasing or refinancing multi-family properties with five or more units.
Key Financing Details
- Financing for apartment buildings and multi-family properties with 5+ units
- Loan structure based on several variables; loan-to-value (LTV), net operating income, debt service coverage ratio, and vacancy rate, etc.
- Available for purchase and refinance
- Flexible prepayment options depending on the loan program and lender
- Flexible terms from 5–30 years and amortized up to 30 years depending on the lender and loan program
Mixed-Use Properties
Mixed-use properties combine residential and commercial space within the same property. Financing for these properties is often considered more complex and may involve slightly higher interest rates compared to single-use residential or commercial financing.
Ideal For
Investors and owner-users financing properties that combine residential and commercial space.
Key Financing Details
- A balanced mix of residential and commercial tenants can help improve property income and reduce overall operating risk
- Parking ratios, zoning classifications, and property use compliance may impact financing, insurance, and lender eligibility
- The number of residential and commercial units can also affect available financing options
- Mixed-use and commercial properties often require higher cash reserves
- Mixed-use properties located in well-populated areas are often easier to finance than rural properties outside city limits
How It Works
From First Conversation to Closing
Initial Consultation
We begin with your goal in mind, ask about the property, terms, borrowers and other vital information.
Loan Packaging
We help you complete and organize your loan package. Once all documents are received, then submitted; underwriting begins.
Underwriting
After the lender reviews the financials and supporting documentation, third-party reports such as appraisals and environmental inspections are typically ordered, which can add several weeks to the process.
Closing
Loan documents are prepared and reviewed. Signing is coordinated through escrow. In some counties, funding and recording cannot occur on the same day.
Commercial Financing FAQs
Ready to Take the Next Step?
Schedule a call to discuss your commercial financing needs, evaluate available options, and plan the next steps.