What a Commercial Real Estate Loan Is
A commercial real estate loan finances income-producing property — office, retail, industrial, multifamily (5+ units), and mixed-use. Underwriting centers on the property's income and the borrower's experience and financials.
Who It's For
- Investors acquiring or refinancing commercial property
- Owner-operators buying their business premises
- Multifamily investors with 5+ unit properties
- Developers and experienced operators
How It Works
Commercial loans are underwritten primarily on the property's net operating income and debt service coverage, alongside the borrower's experience and balance sheet. Terms, amortization, and structures vary widely by property type and lender, which makes broker access to multiple capital sources valuable.
Frequently Asked Questions
How is a commercial loan underwritten?
Primarily on the property's net operating income and debt service coverage ratio, plus the borrower's experience and financial strength.
What property types qualify?
Office, retail, industrial, multifamily (5+ units), and mixed-use, among others. Terms vary by type.
Are terms different from residential loans?
Yes — commercial loans often have shorter terms, different amortization, and more variation between lenders, which is why comparing options matters.