A commercial real estate loan is used by businesses to purchase, renovate, or refinance commercial properties. We’ve put together a list to find the best commercial real estate loans for any need, including retail shopping centers, office buildings, and mixed-use buildings.
Top Commercial Real Estate Loan Options
Best For | |
|---|---|
(Best overall) Long-term owner-occupied commercial real estate loans | |
Commercial real estate loans for multifamily projects | |
Online platform that connects you with Small Business Administration (SBA) 7a commercial real estate loan providers | |
Niche or high-risk industries | |
SBA 504 Loans up to $14 million | |
Experienced developers looking to finance large projects |
How We Evaluated the Best Commercial Real Estate Loan Providers
When evaluating the best commercial real estate loans, we looked at the top lenders and considered the following:
- Loan provider experience
- Costs and rates
- Repayment terms
- Qualifications
- Speed of funding
- Why you may want to use the funds
Based on our criteria, we found that U.S. Bank is the best overall commercial real estate (CRE) loan provider. It is the most versatile and offers everything from conventional CRE loans to bridge loans. Its lending solutions meet the needs of most commercial loan borrowers, and it has offices in 24 major markets with $38 billion in loan commitments.
However, all of the options in this article are good solutions to fund commercial real estate projects. The best commercial real estate loans for you will ultimately depend on your specific needs.
U.S. Bank: Best Overall Commercial Real Estate Lender
U.S. Bank is a large nationwide traditional lender that offers a variety of commercial real estate loans. It offers SBA loans and traditional owner-occupied commercial real estate loans with no funding limit as well as financing for investment properties. As a large nationwide bank, it can generally help most qualified borrowers, regardless of your CRE needs.
U.S. Bank Costs, Terms & Qualifications
The costs of a U.S. Bank loan depend on the type of loan you’re getting, what your credit profile looks like, and the value of your real estate. In general, you’ll be able to borrow up to 80% of the value of the property with interest rates as low as 5%.
Interest Rates | 5% to 7%, variable or fixed |
Minimum Down Payment | 20% to 35% of purchase price |
80% | |
Closing Costs | 2% to 5% of amount borrowed |
Origination Fees | Up to 1% of loan |
U.S. Bank Terms
A U.S. Bank commercial real estate loan doesn’t have a limit on the maximum amount you can borrow. Your repayment terms will depend on your loan needs but can be five to 25 years.
Maximum Loan Amount | Unlimited |
Term | Five to 25 years, fully amortized |
Time to Funding | 30 to 45 days; SBA loan may be longer |
U.S. Bank Qualifications
The minimum qualifications for a U.S. Bank commercial real estate loan are a credit score of at least 700, at least one year in business, and a minimum debt service coverage ratio (DSCR) of 1.25. If your credit profile isn’t much better than the minimum requirements, you may need to put up additional collateral before you can qualify.
Minimum Credit Score | 700 |
Years in Business | One to five years |
Minimum DSCR | 1.25 |
Collateral | May require additional collateral |
*Owner-occupancy Requirement | 51% for traditional and SBA loans |
*An owner-occupancy requirement is when the owner’s business typically occupies at least 50% of the commercial real estate.
Who U.S. Bank Is Best For
A commercial real estate loan at U.S. Bank is best for borrowers who need a large loan amount because U.S. Bank doesn’t have a maximum loan size. It’s a good fit for prime borrowers looking for the lowest possible interest rates and longest repayment terms. The costs of a U.S. Bank loan depends on the type of loan, the borrower’s credit profile, and the property value.
JP Morgan Chase: Best CRE Loan for Multifamily Projects
JP Morgan Chase is a nationwide lender that invests millions of dollars into commercial real estate loans every year. It focuses on multifamily, industrial, office, retail, or mixed-use properties and projects, making it a good fit for many small business real estate owners and developers. JP Morgan Chase can fund projects up to $25 million and has rates competitive to most other large real estate investors.
JP Morgan Chase Costs, Terms & Qualifications
The costs of a loan with JP Morgan chase will vary based on what type of project you’re funding and the risk associated with that project. Generally, this lender will fund up to 80% of the value of the property with competitive interest rates similar to SBA loan rates.
Interest Rates | 5% to 9% |
Minimum Down Payment | 20% to 30% of purchase price |
LTV Ratio | 80% |
Closing Costs | 1% to 2% of loan amount |
Lender Fees | 1% to 3% of amount borrowed |
JP Morgan Chase Terms
JP Morgan Chase offers multifamily loans of up to $25 million and loans on other commercial properties up to $15 million. It prides itself on having a streamlined application process that can typically have you fully funded in about 45 days.
Maximum Loan Amount | $15 million; $25 million for multifamily projects |
Term | One to 10 years |
Time to Funding | 45 days |
JP Morgan Chase Qualifications
A commercial real estate loan from JP Morgan Chase isn’t easy to qualify for. Each investment opportunity is evaluated separately to determine if it’s worth funding. However, you’ll need to be a prime borrower with a 1.25 DSCR. There is no time in business requirement, and you won’t need any additional collateral.
Minimum Credit Score | $15 million; $25 million for multifamily projects |
Years in Business | One to 10 years |
Minimum DSCR | 45 days |
Collateral | No additional collateral required |
Owner-occupancy Requirement | 51% |
Who JP Morgan Chase Is Best For
Real estate owners looking to fund a multifamily project up to $25 million should consider JP Morgan Chase, as it’s one of the best multifamily lenders in the country. It offers flexible options for projects it believes in within the retail, office, or industrial spaces, up to $15 million. If you’re not an established real estate developer but have a solid project that needs financing, then JP Morgan Chase might be your best fit.
SmartBiz: Online SBA 7(a) Commercial Real Estate Loans
SmartBiz is an online SBA loan provider who offers SBA 7(a) commercial real estate loans up to $5 million. It works directly with lenders and matches them based on your unique needs, which speeds up the SBA loan process and improves your chances of getting funded.
If you’re looking for an SBA loan for your commercial real estate project, SmartBiz is a good option to consider because it’s great at funding working capital loans of less than $350,000, and also offer SBA 7(a) CRE loans up to $5 million.
SmartBiz Costs, Terms & Qualifications
Most SBA loans have similar costs regardless of which lender you choose. However, loan packaging fees can vary between lenders. SmartBiz fees can be as low as 1% plus closing costs of about $5,000.
Interest Rates | 7% |
Minimum Down Payment | 10% to 30% of purchase price |
LTV Ratio | 90% |
Closing Costs | $5,000 |
Lender Fees | 1% to 5% of loan amount |
SmartBiz Terms
With a SmartBiz CRE loan, you can qualify for up to $5 million with repayment terms up to 25 years. SmartBiz has great reviews, has straightforward fees, and it will get you funded faster than any SBA loan provider we’ve seen, typically in as quick as 30 days.
Maximum Loan Amount | $5 million |
Term | 25 years |
Time to Funding | 30 days |
SmartBiz Qualifications
SmartBiz qualifications are very similar to any SBA loan qualification requirements. At a minimum, you must have a credit score of 680, at least two years in business, and a DSCR of 1.25. SmartBiz doesn’t require any additional collateral other than the real estate you’re financing.
Minimum Credit Score | 680 |
Years in Business | At least two years |
Minimum DSCR | 1.25 |
Collateral | None required |
Owner-occupancy Requirement | 51% |
Who SmartBiz Is Best For
SmartBiz is right for borrowers looking for a commercial real estate loan up to $5 million through the SBA loan guarantee program and needing quick funding. These are long-term loans with low interest rates but can be difficult to qualify for. Its online technology-focused lending practice makes SmartBiz a good choice for smaller CRE loans.
Northeast Bank: Commercial Real Estate Loans for Niche Industries
Northeast Bank is a fairly new player in the CRE space, but it offers a wide range of real estate financing options. If you have a commercial financing need, there’s a good chance Northeast Bank can help. While it’s a traditional lender, it typically funds loans much faster than other traditional providers. Northeast Bank specializes in lending to risky or very niche industries.
Some of the industries Northeast Bank specializes in include:
- Hotels
- Healthcare facilities
- Gas stations
- Skilled trades
- Retail
The types of loans Northeast Bank offers include:
- SBA 7(a) Loans
- SBA 504 Loans
- SBA Express Loans
- Commercial loans secured by real estate
- Conventional loans to buy commercial real estate
- Refinance
- Portfolio loans
- Bridge loans
- United States Department of Agriculture (USDA) loans
Northeast Bank Costs
Northeast Bank has competitive costs on its commercial real estate loans. However, the costs vary based on the type of loan. For example, its SBA loan costs are similar to any other SBA loan while its bridge loan is more expensive than an SBA option.
Interest Rates | 5.5% variable |
Minimum Down Payment | 20% to 30% of purchase price |
LTV Ratio | 80% |
Closing Costs | Up to 4% of loan amount |
Fees | Up to 3.5% of loan amount |
Northeast Bank Terms
You can initially borrow up to $12 million from Northeast Bank for a commercial real estate loan. However, longtime customers can qualify for up to $20 million. The term of your loan depends on which loan you choose but can be up to 25 years.
Maximum Loan Amount | $12 million |
Term | Up to 25 years |
Time to Funding | 30 to 40 days; shorter for bridge loans |
Northeast Bank Qualifications
The minimum qualifications for a Northwest Bank commercial real estate loan are a 680 credit score, at least two years in business, and a minimum DSCR of 1.25. Depending on your credit profile, you might be required to put up additional collateral beyond the real estate you’re financing.
Minimum Credit Score | 680 |
Years in Business | At least two |
Minimum DSCR | 1.25 |
Collateral | May require additional collateral |
Owner-occupancy Requirement | 51% |
Who Northeast Bank Is Best For
A commercial real estate loan from Northeast Bank can be right for almost any CRE project. If you’re looking for quick CRE funding within 30 days or operate in a risky industry, then Northeast Bank is a good option. It’s right for many niche businesses looking for a lender that’s familiar with their industry.
For more information, read our full Northeast Bank reviews.
Liberty SBF: A Good Option for SBA 504 Commercial Real Estate Loans
Liberty SBF is a nationwide commercial real estate loan provider that focuses on SBA CDC/504 loans. It exclusively works on commercial real estate deals above $1 million and can fund loans up to $14 million. Liberty SBF typically finances the acquisition and/or refinancing of owner-occupied, hospitality, multi-use, and special-use projects.
Keep in mind that SBA 504 Loans have three different portions. You’ll borrow 50% from a traditional bank lender, 40% from a certified development company (CDC), and you’ll provide 10% as a down payment.
Liberty SBF Costs, Terms & Qualifications
The costs of a Liberty SBF loan are similar to other loan providers offering SBA 504 Loans. Like any other SBA loan type, the differences will be in the lender packaging fees. Liberty SBF charges fees up to 3.75% on its 504 Loans, with up to $13,000 additional costs for closing and appraisals or environmental reports.
Interest Rates | 4% to 6% |
Minimum Down Payment | 10% to 20% of purchase price |
LTV Ratio | 90% |
Closing Costs | $3,000 processing fee; $10,000 expense deposit |
Lender Fees | 1% to 3.75% |
Liberty SBF Terms
With an SBA 504 Loan from Liberty SBF, you can borrow up to $14 million and spread your payments out over a repayment term of up to 25 years. For an SBA 504 lender, Liberty SBF is faster than most, typically providing funding in around 30 days.
Maximum Loan Amount | $14 million |
Term | 25 years |
Time to Funding | 30 days |
Liberty SBF Qualifications
The qualifications for a Liberty SBF loan are the same for most other SBA 504 Loans. At a minimum, you’ll need a credit score of 680, two years in business, and a DSCR of 1.20. Liberty SBF doesn’t require any additional collateral other than the real estate you’re financing.
Minimum Credit Score | 680 |
Years in Business | At least two years |
DSCR | 1.20 |
Collateral | Only the real estate being financed |
Owner-occupancy Requirement | 51% |
Who Liberty SBF Is Best For
Liberty SBF is a great option if you’re looking for the low interest rates of an SBA 504 Loan and need to borrow up to 90% of the value of the property. Due to the CDC portion of the loan, this type of financing can take longer to fund than other providers on the list, so it’s important that you don’t need funds within 30 days.
For more information, read our full Liberty SBF review.
Wells Fargo: Best Commercial Real Estate Loans for Experienced Real Estate Investors
Wells Fargo is one of the largest providers of commercial real estate loans. It prefers experienced real estate developers or owners who need to fund large projects. Its maximum financing amount goes up to $500 million, but deals that large are rare. Wells Fargo also works with real estate investment trusts (REITs) and real estate investors looking to raise money for one-off projects.
Wells Fargo Costs, Terms & Qualifications
The costs of a Wells Fargo CRE loan are typically lower than other loan providers because it focuses on larger loan amounts. Its LTV and interest rates are competitive with other large national loan providers.
Interest Rates | 5% to 10% |
Minimum Down Payment | 20% to 30% of purchase price |
LTV Ratio | 80% |
Closing Costs | 5% to 1% of loan amount |
Lender Fees | 1% to 3% of loan amount |
Wells Fargo Terms
Because Wells Fargo can lend up to $500 million for a single project, this lender can finance most commercial real estate transactions. You’ll typically get funded within four to six weeks and can repay the loan over the next five or 10 years.
Maximum Loan Amount | $500 million |
Term | Five to 10 years; up to 20 years for large projects |
Time to Funding | Four to six weeks |
Wells Fargo Qualifications
Since Wells Fargo focuses on experienced real estate developers and owners, it’s less focused on personal credit scores. Instead, it values what’s on the balance sheet. Wells Fargo wants to lend to a strong real estate company that can display their past success and convey how the financed project is going to be successful.
Minimum Credit Score | $500 million |
Years in Business | Five to 10 years; up to 20 years for large projects |
DSCR | Four to six weeks |
Collateral | May require additional real estate assets |
Owner-occupancy Requirement | None |
Who Wells Fargo Is Best For
Wells Fargo is a great solution for experienced real estate owners and developers looking to fund a project that costs more than $15 million. It’s one of the largest commercial real estate loan providers in the country and specializes in helping get these larger projects to closing. You can also get a smaller loan—up to $750,000—for the real estate your business occupies, which is much easier to qualify for and quicker to fund.
Bottom Line
Our recommendation for best commercial real estate loans is U.S. Bank. It has 24 offices nationwide and offers a variety of funding options for your project to help you purchase, refinance, or improve your property. U.S. Bank has competitive rates and can get you funded in as soon as 30 days.
Mahendra Reddy
Very insightful with good enough details. Thank you.
Adam Stevens
Your article on best commercial real estate loans is very insightful, Priyanka. Given the rapid expansion and valuation growth of commercial real estate, there will always be a need for commercial real estate loans. Understanding the intricacy of each loan is important so this article is on point!
Thanks,.
Adam
Priyanka Prakash
Thanks Adam! Appreciate it!