Commercial Property Mortgage & Real Estate Loans

Use it to buy, build, expand, remodel, or even refinance.


Understanding Commercial Real Estate Loans

LOAN AMOUNT

$250,000-5,000,000

TIME TO FUND

As Soon As 45 Days

LOAN TERMS

20-25 Years

INTEREST RATE

As Low as 4.5-6%

What is Commercial Mortgage

Building out your business location is a smart way to increase your assets. Every renovation, upgrade, or expansion adds value to your property, gives you the space you need to streamline operations, or attracts more customers. A commercial mortgage can help you do all this and more. Remember, there’s more at stake than square footage. Making a savvy financing move could help you build a firmer foundation for your small business—literally and fiscally.

Check Eligibility

Commercial Mortgage Rates

Commercial mortgage interest rates can be as low as 4.5%, making the loans an incredibly cost-effective form of capital.

When you apply through Lendio, you can compare commercial mortgage rates from our curated network of 75+ lenders, and your funding manager can help you weigh the benefits and costs of your financing options.

To get a ballpark idea of how much your commercial mortgage payments could be, check out our commercial real estate calculator. Plug in a few numbers and we’ll do the math for you.

Check Eligibility

Minimum Requirements For a Commercial Mortgage

If your business doesn’t match some of the qualifiers below, it may be more challenging to receive funding from our lending partners.

CREDIT SCORE

600 or higher

MONTHLY REVENUE

at least $8K

TIME IN BUSINESS

6 months or more


Not Qualified Yet? We Can Help

Lendio has the accounting software tools to get your start-up business ready for financing.

Easily track your company’s health and identify any capital shortcomings you may face.
Understand the financial health of your business with reports like profit and loss, balance sheet, tax summary, customer statements, and accounts receivable.
Create personalized invoices and allow your customers to pay by credit card with our free software.

How To Apply For A Commercial Property Loan

Sure, you can go the bank route with a long application process and 75% rejection rate. But if you’re looking for financing in this lifetime, Lendio offers a faster, easier application process.

STEP
1
Fill out the 15-minute online application.

It’s secured with bank-grade encryption and SSL technology, so you know your information is safe.

STEP
2
Receive matches.

We pair you with loan options from our network of 75+ lenders. Our dedicated funding managers can help you weigh the pros and cons of each option.

STEP
3
Get funded.

Once you’re approved, you’ll be able to access your capital in as little as 24 hours.

Apply Now

Why use Lendio?

$12+ BILLION

funded through us

75+

lenders in our network

300,000+

loans funded

“The Lendio process was amazing”

Sterling Hannemann
Co-Owner of Seven Brothers

“Lendio literally saved my business.”

Chloria Chandler
Owner of Bobbee O’s BBQ

Commercial Mortgage FAQs

A commercial mortgage, sometimes called business mortgage, is a loan designed to help your business building-related financial costs, such as securing a property or building for your business.

  

You can use a commercial mortgage to purchase a commercial property—whether it’s office space, a factory, retail, or restaurant space. If you can’t find an existing building that’s right for your needs, you can use your building loan to cover the construction costs of building a new space. Need to expand? A commercial mortgage covers that.

If you are looking for a loan for another purpose, there are many different types of small business loans that you can look at.

 

Yes, you can extend your payment terms and adjust your interest rate by refinancing with a commercial mortgage.

Yes! Would updating your building help you to attract more customers? A commercial mortgage can give you the financing to make it happen. Restaurants and retailers have demonstrated the ways an updated interior can drive customers, bringing the owners a sweet return on their investment.

In our professional opinion, probably not. That sounds like a personal purchase, and one small enough that you probably shouldn’t take out a loan for it. Unless it’s a fancy, super-important hat that your business needs. In that case, we recommend an equipment loan.

Most lenders will require your business to occupy 51% of the property to qualify for a commercial mortgage. Because a commercial mortgage is an asset-based loan, the loan amount and rate will largely be based on your credit and the value of the property you’re using as collateral.

Pick the right location

The value of the property affects the mortgage decision. For that reason, a prime retail space in Los Angeles may be easier to finance than a rural storage unit a few hours outside Fargo, North Dakota. You’ll want to take this into consideration when you’re deciding where to buy or build.

Communicate renovation plans to lenders

If you’re planning on making upgrades to a property, your lender will want to know about them. For full-scale property renovations, your lender will also want to assess the after-repair value (commonly called ARV) of the property. Be sure you have a plan for how you’ll use the mortgage before you apply—that way, you’ll have answers to all the lender’s questions.

Prepare necessary documents

  • Purchase contract
  • Property blueprints
  • Market analysis for the property
  • Project budget and scope of work
  • Assessment of the property’s existing conditions

Quickly Compare Loan Offers from Multiple Lenders

Applying is free and won’t impact your credit

Talk to a rep at (855) 853-6346
Mon-Fri 7:30am-5pm MST

Breadcrumb: Article: Product: