Commercial Loans

PROGRAM OVERVIEW

Commercial real estate loans finance the purchase, refinance, or renovation of income-producing properties including office buildings, retail centers, industrial warehouses, multifamily apartment buildings (5+ units), mixed-use developments, and special-purpose properties. Unlike residential mortgages, commercial loans are underwritten primarily on the property's income-generating potential and the borrower's overall financial strength.

Commercial loan structures differ significantly from residential mortgages. Terms typically range from 5 to 25 years, with amortization periods of 15 to 30 years. Many commercial loans feature a balloon payment at the end of the term, requiring refinancing. Interest rates can be fixed or variable, and are influenced by the property type, location, tenant quality, and the borrower's experience and financial position.

At Xpert Home Lending, our commercial lending division serves investors and business owners looking to acquire or refinance commercial properties. We offer loan amounts from $250,000 to $10 million, with competitive rates and flexible structures tailored to each deal. Whether you are a seasoned commercial investor or purchasing your first commercial property, our team provides the expertise and personalized service needed to navigate the commercial lending process.

COMMON QUESTIONS

Commercial Loans FAQ

What types of properties qualify for commercial loans?

Commercial loans cover a wide range of property types including multifamily apartment buildings (5+ units), office buildings, retail shopping centers, industrial and warehouse properties, mixed-use buildings, hotels and hospitality properties, self-storage facilities, and medical or professional office buildings. Each property type has specific underwriting criteria and rate considerations.

How is qualification different from a residential mortgage?

Commercial loans focus heavily on the property's net operating income (NOI) and the Debt Service Coverage Ratio (DSCR), rather than the borrower's personal income. Lenders also evaluate the borrower's net worth, liquidity, real estate experience, and the overall strength of the deal. Personal guarantees are typically required, especially for smaller loans or less experienced borrowers.

What down payment is required?

Commercial loans typically require a down payment of 20-30% of the purchase price, depending on the property type, borrower experience, and loan program. SBA loans may allow lower down payments (as low as 10%) for owner-occupied properties. Multifamily properties with strong cash flow may qualify for higher leverage.

What are the typical loan terms?

Commercial loan terms usually range from 5 to 25 years, with a 15 to 30-year amortization schedule. Many commercial loans are structured with a balloon payment due at the end of the term — for example, a 10-year term with a 25-year amortization means the loan is due for refinancing after 10 years. Fully amortizing options are available but typically carry higher rates.

How long does a commercial loan take to close?

Commercial loans generally take 30 to 90 days to close, depending on the complexity of the deal, property type, and loan program. SBA loans may take longer due to additional government approval steps. Having a complete application package with financials, property information, and business documentation ready can significantly speed up the process.

NEXT STEPS

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