The best commercial real estate (CRE) loans will offer financing for commercial properties at low rates with flexible repayment terms. Common types of properties include apartments, multifamily homes, retail stores, and office buildings. Since the best loan will vary depending on your qualifications and investment needs, we’ve selected lenders with different types of loans and flexible qualification requirements for things like credit scores, time in business, and annual revenue.
Here are our top lenders for the best commercial real estate loans:
- Lendio: Best overall for multiple loan options
- RCN Capital: Best for low monthly payments, long repayment terms, and low rates
- 1West: Best for low credit scores
- Lima One Capital: Best for distressed properties
- SMB Compass: Best SBA 504 loans for major fixed assets
- U.S. Bank: Best for CRE or SBA loan options
- JPMorgan Chase: Best for experienced real estate investors
Best Commercial Real Estate Loans at a Glance
Estimated Starting Rates | Maximum Loan Amount | Maximum Loan Term | Required Time in Business | Required Credit Score | |
|---|---|---|---|---|---|
| $5 million | 2 years | |||
 | 6% | $20 million | 30 years | None | 650 to 680 |
 | 6% | $20 million | 5 years | 2 years | 500 |
 | $10 million | 36 months | Varies | Varies | |
 | 4.92% | $20 million | 30 years | 3 years | 650 |
 | 6.99% | 25 years | 2 years recommended | 700 recommended | |
 | At least $25 million | 30 years | 2 years | 680 | |
Lendio: Best Overall for Multiple Loan Options
 | |
Rates & Terms | |
Starting Interest Rate |
|
Loan Amount | Up to $5 million |
Loan Term |
|
90% | |
Estimated Closing Costs and Fees | Varies based on the loan program |
Time to Fund |
|
Qualifications | |
Credit Score |
|
Time in Business | 2 years |
Annual Revenue | $96,000 annually for SBA loans |
1.25x recommended | |
Why We Like Lendio
Lendio is a broker with a network of over 75 lenders. With a single application, you can be matched with a variety of lending partners, which allows you to have multiple chances for approval and compare lending products that offer the best rates and loan terms suitable for your business needs. For this reason, we chose it as our best overall for multiple loan options.
However, you may not know the exact qualification requirements until after you apply because its partners may each have varying eligibility criteria. And while Lendio does list minimum qualification requirements for both its CRE and SBA loan programs, it seems to imply that there may be some flexibility as failing to meet any of the criteria could just make it more challenging to get approved.
You can apply online on the Lendio website. The application process can be completed in under 15 minutes, and it comes at no cost and will not negatively impact your credit score. You can also find Lendio’s contact information to speak with a representative about any questions you may have.
RCN Capital: Best for Low Monthly Payments, Long Repayment Terms & Low Rates
| |
Rates & Terms | |
Starting Interest Rate | 6% to 10.99% |
Loan Amount | $50,000 to $20 million |
Loan Term | Up to 30 years |
Maximum LTV Ratio | 80% to 90% |
Estimated Closing Costs and Fees | 1% to 4% of the loan amount |
Time to Fund | 1 to 3 weeks |
Qualifications | |
Credit Score | 650 to 680 depending on loan program |
Time in Business | None |
Annual Revenue | Varies |
DSCR | As low as 1.05x, but may vary |
Why We Like RCN Capital
RCN Capital is a commercial lender that offers loans for business purposes. It offers some of the lowest starting rates and longest repayment terms in this guide, which is what makes it one of our top picks. Loans must be backed by nonowner-occupied and commercial properties and be issued to a business entity. The provider offers several different types of loans depending on your needs, including the following:
- Fix and flip loans
- Long-term rental loans
- Multifamily loans
- New construction loans
- Investor rental portfolio loans
Depending on the loan program you choose, options may also be available for purchases, rate and term refinances, and cash-out refinances. Keep in mind that rates, requirements, and terms will vary per loan program, so be sure to determine which loan type is best for you before proceeding with an application.
Businesses that work with RCN Capital will not typically have to pay any upfront fees during the preapproval or approval process. Some exceptions may apply, such as third-party fees for things like appraisals, environmental studies, or other project feasibility reports, which would need to be paid upfront by the borrower.
To apply, visit the RCN Capital website to complete an online application.
1West: Best for Low Credit Scores
| |
Rates & Terms | |
Starting Interest Rate | 6% |
Loan Amount | $100,000 to $20 million |
Loan Term | 6 months to 5 years |
Maximum LTV Ratio | 80% |
Estimated Closing Costs and Fees | 1% to 3% of the loan amount |
Time to Fund | 2 to 3 weeks |
Qualifications | |
Credit Score | 500 |
Time in Business | 2 years |
Annual Revenue | Varies |
DSCR | Not stated |
Why We Like 1West
Similar to Lendio, 1West is a loan broker with over 50 lenders in its network. Although it has similar starting rates to RCN Capital, it has the lowest credit score requirements in our guide, making it a good option if you’re seeking financing and your business credit score is less than ideal.
Its CRE loans are available in all 50 states and can be used for the purchase, renovation, or expansion of a new or existing commercial property. It commonly deals with businesses that need funding for offices, retail spaces, hotels, and apartments. CRE loans can be made to a wide range of business entities, including partnerships, developers, trusts, corporations, and real estate investment trusts (REITs).
With 1West, you also have the option to get funding with no minimum gross sale requirement. Loans can also be issued in either a 1st or 2nd lien position, and interest-only options are available if you want to have lower monthly payments.
To learn more or to submit a loan application, visit the 1West website.
Lima One Capital: Best for Distressed Properties
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Rates & Terms | |
Starting Interest Rate | Not stated, but estimated from 8% to 11% |
Loan Amount | Up to $10 million |
Loan Term | 24 to 36 months |
Maximum LTV Ratio | 80% |
Estimated Closing Costs and Fees | 2% to 3% of loan amount |
Time to Fund | 1 to 3 weeks |
Qualifications | |
Credit Score | Varies based on the loan program |
Time in Business | Varies based on the loan program |
Annual Revenue | Varies based on the loan program |
DSCR | 1.25x recommended |
Why We Like Lima One Capital
If you’re looking to finance a property with potential issues, Lima One Capital is our best pick for distressed properties because of its various loan programs that can help finance low cash flow properties, those with low occupancy, and more.
Even though other lenders like RCN Capital offer multifamily financing, Lima One Capital stands out for its variety of loan programs. The multifamily programs offered by Lima One Capital include the following:
- Value-add bridge: Ideal for distressed properties needing rent increases and capital expenditures
- Stabilized bridge: Good for turn-key properties needing more seasoning or further tenancy before long-term takeout
Depending on the loan program you choose, amortized and interest-only payment options can be selected. Nonrecourse lending is also available if you want to better protect your personal assets from being seized in the event you default on loan payments.
Besides offering loans for multifamily properties, Lima One offers financing for rentals, new construction, and fix-and-flip properties. Head over to the Lima One Capital website to learn more or to submit an application.
SMB Compass: Best SBA 504 Loans for Major Fixed Assets
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Rates & Terms | |
Starting Interest Rate | 4.92% to 5.22% |
Loan Amount | $500,000 to $20 million |
Loan Term | 10 to 30 years |
Maximum LTV Ratio | 90% |
Estimated Closing Costs and Fees | 2% to 4% of the loan amount |
Time to Fund | 30 to 90 days |
Qualifications | |
Credit Score | 650 |
Time in Business | 3 years |
Annual Revenue | $500,000 |
DSCR | 1.25x recommended |
Why We Like SMB Compass
SMB Compass offers different types of SBA loans, but it can be a particularly good choice for its SBA 504 program. This is one of our recommendations because in addition to competitive rates, its 504 loans offer up to $20 million, much more than the typical $5 million offered by other lenders for this type of financing.
SBA 504 loans must be used for financing major fixed assets that promote business growth and job creation. Some examples of this could include buildings, land, parking lots, office buildings, machinery, and other equipment. If you need other financing, consider the other SBA loan programs offered by this provider.
SMB Compass recommends borrowers prepare the following documents to ensure a streamlined process.
- Applicable business licenses and certifications
- Proof of business ownership
- Three years of personal and business tax returns
- Financial statements (such as profit and loss statements, balance sheets, and cash flow statements)
To apply or learn more, visit the SMB Compass website.
U.S. Bank: Best for CRE or SBA Loan Options
Rates & Terms | |
Starting Interest Rate | Estimated 6.99% |
Loan Amount |
|
Loan Term | Up to 25 years |
Maximum LTV Ratio | 80% |
Estimated Closing Costs and Fees | 2% to 4% of loan amount |
Time to Fund | 30 to 45 days (Up to 90 days for SBA loans) |
Qualifications | |
Credit Score | 700 recommended |
Time in Business | 2 years recommended |
Annual Revenue | None |
DSCR | 1.25x recommended |
Why We Like U.S. Bank
U.S. Bank Member FDIC is our pick for borrowers looking for either Small Business Administration (SBA) or CRE loans because of the combination of its rates and terms. Business owners should be aware, however, that U.S. Bank has strict qualification requirements as it typically requires good credit and strong finances to get approved.
Although you can visit the bank’s website for general information on its loan programs, most borrowers will need to call, submit an application, or schedule an appointment to get more details about available rates and qualification requirements, as it’s not directly listed on its website. Representatives we’ve spoken to have stated that some programs may have flexibility in underwriting, so you may still be encouraged to apply even if you don’t meet the recommended qualifications stated in the table above.
Borrowers interested in getting an SBA loan should know that U.S. Bank is an SBA Preferred Lender. Preferred Lenders can make final credit decisions on behalf of the SBA, reducing turn times needed for a separate set of approvals and allowing you to get funding more quickly compared to other lenders.
Unlike some providers, U.S. Bank does not have an online application process for these loans. Instead, borrowers can schedule an appointment via the website or request a call to discuss the next steps.
JPMorgan Chase: Best for Experienced Real Estate Investors
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Rates & Terms | |
Starting Interest Rate | Estimated 7% and up |
Loan Amount | $500,000 to at least $25 million |
Loan Term | Up to 30 years |
Maximum LTV Ratio | 80% |
Estimated Closing Costs and Fees | Greater than $2,000 or 0.125% of the loan amount |
Time to Fund | 30 to 45 days |
Qualifications | |
Credit Score | 680 |
Time in Business | 2 years |
Annual Revenue | Varies |
DSCR | 1.25x |
Why We Like JPMorgan Chase
JPMorgan Chase has commercial lending programs that have large loan amounts and offer a wide range of options for repayment terms. Similar to U.S. Bank, it generally has stricter qualification requirements in comparison with other lenders listed here. However, because of having the largest loan amount in this guide, we chose this as our top pick for experienced real estate investors who have strong credit and financial history and are looking to make a large real estate investment.
Starting interest rates aren’t disclosed on the website; however, they are estimated to be higher than other providers in this guide. That said, JPMorgan Chase does offer some of the longest repayment terms in comparison. Some examples of repayment terms available include balloon payments, fully amortized loans, adjustable-rate loans, and fixed-rate loans for up to 30 years. Interest-only payment options are also available on a case-by-case basis for up to three years and require a minimum loan amount of $1 million.
JPMorgan Chase also provides financing for other property types, including industrial, office, retail, and mixed-use properties. One downside of this lender is its ability to offer financing in just 13 major US markets According to the website, it’s available in Boston; Chicago; Denver; Los Angeles; Minneapolis; New York; Orange County, California; Portland, Oregon; Sacramento, California; San Diego; San Francisco; Seattle; and Washington, D.C. . If you’re interested in applying or learning more, you can visit the JPMorgan Chase website to determine if financing is available in your location.
How We Chose the Best Commercial Real Estate Lender
Our selection of the best commercial real estate loans was based on the following criteria:
- Interest rates (check out our guide on what impacts CRE rates)
- Loan terms and repayment options
- Maximum loan amount
- Qualification requirements
- Down payment requirements
- Ease of application
- Application, approval, and funding speed
- Customer reviews and ratings
How to Choose a Commercial Real Estate Loan Provider
When choosing the best commercial real estate lender, you’ll want to consider a few factors to ensure you work with one that fits your budget and business needs. Keep the following in mind when shopping around for a lender:
- Consider your investment type: Depending on the needs of your real estate investment, be sure to consider what type of commercial real estate loan program is best suited to the property—whether it be a multifamily loan, a bridge loan, or other various commercial loan types.
- Review lender qualification requirements: Lenders will have varying qualification criteria to be considered for approval. Generally, factors such as credit score, time in business, and annual revenue will be taken into account when evaluating an application. Before applying, ensure you meet the minimum qualifications for better odds of approval.
- Compare loan costs and terms: When shopping around for a lender, you’ll want to compare various loan offerings and what they provide in regards to rates and terms. Depending on your budget, you’ll want to work with a lender that meets your needs and review any associated costs, including the down payment and repayment expectations.
Alternatives to a Commercial Real Estate Loan
For borrowers unable to obtain a traditional CRE loan, there are other options to help finance a CRE investment. If you don’t meet the necessary criteria or are simply exploring all of your financing options, consider the following alternatives:
- Hard money loans: Hard money loans can provide short-term financing solutions that typically require repayment within two to three years. This can allow you to acquire a property now and give you time to improve your business finances or credit to replace it with a permanent source of financing in the future. Check out our guide on the best hard money lenders to learn more or find a provider.
- Loans from friends and family: For those with limited resources or credit history, borrowing funds from friends and family can be a good option for businesses wanting to be able to negotiate the terms of a loan in a less formal way. Read our article on how to raise money from friends and family to learn more about using this method to obtain funding.
- Rollover for business startups (ROBS): A ROBS isn’t a loan but instead a way to access your retirement accounts tax- and penalty-free. You’ll typically need a minimum investment of $50,000, and we recommend referencing our guide on the best ROBS providers to help you through the process to avoid compliance issues, fines, or penalties.
Frequently Asked Questions (FAQs)
Qualification requirements will vary depending on the commercial real estate loan type and the lender facilitating the transaction. Generally speaking, these loans can have stricter documentation and qualification requirements in comparison with other business loans. You’ll need to prove the creditworthiness of your business, inclusive of a strong credit score and annual revenue, and that you can provide a down payment of anywhere from 10% to 30%.
Rates can range from around 4% to 11%, depending on your financing needs. This will depend on the type of CRE loan you’re getting, the lender you decide to work with, as well as your own business qualifications.
Depending on the type of loan, most commercial real estate loans can range anywhere from a few months to many years. For short-term investments, this can range anywhere from 12 to 36 months. For long-term investments, repayment terms generally run 10 to 30 years.
Bottom Line
The best commercial real estate lenders should provide loan offerings applicable to your real estate investment needs, inclusive of favorable rates and terms and flexible qualification requirements. The CRE lenders we’ve selected offer a wide range of loan types, and you can read our guide on commercial real estate loans to learn more about which might be best suited for you. Be sure to shop around and consider all of your financing options before making a decision.
