Commercial Mortgage Overview
Commercial mortgages provide long-term, permanent financing for income-producing commercial real estate. Unlike residential mortgages, these are underwritten based on the property's income and the borrower's business experience.
Commercial mortgages are the right fit for:
- ◉ Multifamily properties (5+ units) — apartment buildings, student housing, senior living
- ◉ Retail properties — strip malls, standalone retail, service-oriented spaces
- ◉ Office buildings — single-tenant, multi-tenant, medical office
- ◉ Mixed-use — retail on ground floor, residential or office above
- ◉ Industrial and warehouse — light industrial, flex space, self-storage
Program Highlights
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Fixed and adjustable rates — Lock in certainty with a fixed rate or take advantage of lower ARM pricing.
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25-30 year amortization — Lower monthly payments with long-term payoff schedules.
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Full-term and balloon options — Choose between fully amortizing loans or 5/7/10-year terms with balloon.
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Cash-out refinance available — Pull equity from stabilized properties for portfolio growth.
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Competitive rates — Access to bank, credit union, CMBS, and agency (Fannie/Freddie) pricing.
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Entity vesting — Close in LLC, LP, or corporation.
Typical Requirements
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DSCR: Minimum 1.20-1.25x depending on property type and lender
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Down Payment: 20-30% for purchase (varies by property type and borrower strength)
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Credit Score: 660+ (bank programs may require 680+)
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Documentation: Full doc — tax returns, rent roll, operating statements, entity docs
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Loan Size: $100K to $5M+ (larger deals quoted case-by-case)
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Occupancy: 75%+ for refinance; stabilization plan for lower occupancy