Guide
Commercial Real Estate Financing Guide
Commercial real estate financing covers owner-occupied SBA real estate, conventional bank CRE, bridge and stabilized investor loans. Lenders underwrite the property’s income, the borrower’s strength and the exit together, and size the loan on both LTV and debt-service coverage.
Structures
- SBA owner-occupied real estate (low down payment)
- Conventional bank CRE
- Bridge to permanent (acquisitions, value-add)
- Stabilized investor loans
How loans are sized
Two tests usually govern: loan-to-value (commonly up to ~80%) and the property’s debt-service coverage ratio. The more conservative of the two sets the loan amount.
| Max LTV | Up to ~80% |
| Key test | Debt-service coverage |
| Appraisal | Required for most CRE |
| Documents | Rent roll, leases, operating statements |
What lenders underwrite
- Occupancy and tenant quality
- Lease term and rollover risk
- Borrower liquidity and experience
- A credible repayment path
Planning the exit
On bridge and construction deals, the take-out matters as much as the entry. Confirm permanent-loan eligibility early and budget interest carry for the bridge period.
Frequently asked questions
What LTV is typical?
Up to roughly 80%, varying by property type and borrower.
Do you finance owner-occupied property?
Yes — including SBA real estate programs.
How long does CRE take?
Timelines vary widely; bridge can close in weeks, conventional and SBA longer.