Commercial Property Financing FAQ

Commercial property loans typically offer LTV ratios of 75-80% for stabilized properties, meaning you need a 20-25% down payment. For SBA 504 loans on owner-occupied properties, you can achieve up to 90% LTV with just 10% down. The exact LTV depends on property type, location, tenant quality, borrower experience, and loan program. Properties with strong cash flow and creditworthy tenants may qualify for higher leverage.

Commercial real estate loan rates vary based on loan type, property, and borrower qualifications. Conventional loans typically range from 6.5-8.5%, while SBA 504 loans offer fixed rates around 6-7% for 20-25 year terms. Rates depend on factors including credit score, property cash flow, loan-to-value ratio, and market conditions. We shop multiple lenders to secure the most competitive rates for your specific situation and provide detailed rate comparisons.

Yes, commercial property refinancing is available for various purposes including lowering your interest rate, accessing equity for improvements or expansion, consolidating debt, or switching from a variable to fixed rate. You typically need at least 20% equity in the property and demonstrated cash flow to support the new loan. Refinancing makes sense when you can reduce your rate by at least 0.75-1% or when you need capital for strategic purposes. We analyze your current loan terms and property value to determine if refinancing benefits you.

Commercial property loan terms typically range from 5 to 25 years depending on the loan type and property. Conventional loans often have 5-10 year terms with 20-25 year amortization schedules, requiring a balloon payment at maturity. SBA 504 loans offer fully amortizing 20-25 year terms with no balloon payment, providing payment stability. Longer terms result in lower monthly payments but higher total interest costs. We help you select the optimal term structure based on your investment strategy and cash flow needs.

Required documents include personal and business tax returns (2-3 years), personal financial statement, business financial statements, rent roll showing current tenants and lease terms, property operating statements, purchase agreement or property appraisal, environmental reports, and business plan or property pro forma. For owner-occupied properties, you'll also need business licenses and proof of business operations. We provide a comprehensive checklist upfront and help you organize all documentation to expedite the approval process.