Commercial Real Estate Loans — Financing Built Around Your Property's Income

Flexible financing for office, retail, industrial, and multifamily properties — with rates and terms built around your deal.

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What Is Commercial Real Estate Lending?

If you're asking what is commercial real estate lending, it's financing used to purchase, refinance, or develop property intended for business use — office buildings, retail centers, industrial space, multifamily properties, and mixed-use developments. Unlike a residential mortgage, a commercial real estate loan is underwritten based heavily on the property's income potential and the borrower's business financials, not just personal credit.

How Do Commercial Real Estate Loans Work?

If you're wondering how do commercial real estate loans work, most follow a similar structure: a lender evaluates the property's value, its income (existing or projected rental income), and the borrower's financial strength, then structures a loan with a shorter amortization period than a typical residential mortgage — often 5, 7, or 10 years, even if payments are calculated on a 20-25 year schedule, with a balloon payment due at the end of the term.

How to Get a Commercial Real Estate Loan

If you're figuring out how to get a commercial real estate loan, lenders typically want to see:

A clear picture of the property's income potential or business use
Financial statements for the business or borrowing entity
A down payment, typically 20-30% of the purchase price
A debt service coverage ratio (DSCR) showing the property can support the loan payment
An appraisal establishing the property's current market value

Commercial Real Estate Loan Rates and Lending Terms

Commercial real estate loan rates and commercial real estate lending rates vary based on the lender, property type, loan-to-value ratio, and overall market conditions — they're generally higher than residential mortgage rates, reflecting the added complexity and risk of commercial underwriting. Commercial real estate lending terms typically run shorter than residential loans, often with a balloon payment or a required refinance at the end of the initial term.

Commercial Real Estate Financing Rates: What Affects Them

Several factors influence commercial real estate financing rates:

Property type — retail, office, industrial, and multifamily each carry different risk profiles
Loan-to-value ratio — a lower LTV typically earns a better rate
The borrower's financial strength and experience
Current market conditions and benchmark interest rates
The property's existing or projected income

A Note on Bank of America Commercial Real Estate Lending

If you're searching for Bank of America commercial real estate lending specifically, that's a different institution than us, and we can't speak to their rates, terms, or qualification requirements. What we can tell you is what we offer: commercial real estate financing connecting investors and business owners with private and institutional lenders, often with faster approval timelines and more flexible underwriting than a traditional bank can offer.

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Ready to explore financing for your commercial property? Contact us to discuss your deal and see what terms you qualify for.