Commercial real estate financing spans $150K to $10M: conventional loans at roughly 6.5 to 9.5 percent, DSCR investor loans priced off property cash flow instead of owner income, and bridge money that closes in 1 to 4 weeks. Typical leverage runs 65 to 80 percent in 2026.
Property finance is a menu, not a product. The right structure depends on what the building does: houses your business, produces rent, or needs work before it can do either.
Owner-occupants get the best pricing, investors underwrite on the property's own cash flow through DSCR, and value-add projects bridge first and refinance stabilized. We structure to the exit, not just the purchase.
Term sheet
- Amounts
- $150K to $10M
- Cost
- Conventional 6.5 to 9.5%, bridge 9 to 14% interest-only
- Leverage
- 65 to 80% of value
- Term
- 5 to 25 years, amortized 20 to 30
- Time to fund
- Bridge 1 to 4 weeks, conventional 30 to 90 days
- DSCR floor
- About 1.20x property cash flow coverage
a.The right fit
- Buying the building your business already occupies
- Investor purchases and refinances underwritten on rent, not W2s
- Auctions, maturities, and repositions that cannot wait for a bank
- Cash-out refinances against stabilized equity
b.Read before you sign
- Many commercial loans balloon before they amortize. Know your exit date and your refinance plan on day one.
- DSCR deals need the rent to cover the payment with margin. We run the coverage math before you go under contract.
- Bridge money is a tool, not a home. Price the extension fees and exit before you close, not after.
c.How it funds
Frame the deal
Property type, use, income, and your exit define the structure before any application goes out.
Match the capital
Conventional, DSCR, or bridge, placed with lenders active in that asset class this quarter.
Close on schedule
Bridge closes in weeks with light documentation. Conventional follows appraisal and underwriting in 30 to 90 days.
d.Plain answers
What is a DSCR loan?
A loan underwritten on the property's debt service coverage ratio: rent divided by the proposed payment. At 1.20x or better, many lenders need no personal income documentation at all, which makes DSCR the standard tool for self-employed investors.
How fast can a commercial bridge loan close?
One to four weeks is realistic, driven mostly by title and insurance. Bridge lenders underwrite the asset, not your tax returns, which is why maturities and auction timelines get solved here.
How much down payment does commercial property take?
Plan on 20 to 35 percent for most purchases. Owner-occupants using SBA 504 can put down as little as 10 percent, which is often the single biggest cash advantage available to a business buying its building.