The best commercial real estate (CRE) loans will provide financing for commercial properties at competitive rates. Some examples of commercial properties include office buildings, retail stores, multifamily properties, and apartments. The best loans will also have a combination of flexible loan terms and qualification requirements for things like credit scores, time in business, loan amount, and repayment terms.
If you’re looking for the best commercial real estate lender, here are our seven picks:
- Lendio: Best overall for multiple loan options
- U.S. Bank: Best for long-term CRE or Small Business Administration (SBA) loans
- JPMorgan Chase: Best for multifamily apartment financing and flexible loan terms
- SBG Funding: Best for flexible terms and large SBA 7(a) loan amounts
- RCN Capital: Best for low monthly payments, long repayment terms, and low rates
- 1West: Best for low credit scores
- Lima One Capital: Best for low occupancy and low cash flow properties
Best Commercial Real Estate Loans At a Glance
Starting Rates | Maximum Loan Amount | Maximum Loan Term | Required Time in Business | Required Credit Score | |
|---|---|---|---|---|---|
 Broker | 4.5% and up | $5 million | 25 years | 6 months | 600 |
 Provider | 6.99% | $12.375 million | 25 years | 2 years | 700 |
 Provider | 7% | $25 million-plus | 30 years | 2 years | 680 |
 Provider | 11% (prime plus 2.5%) | $10 million | 10 years | 2 years | 650 |
 Provider | 6.475% | $10 million | 30 years | Not stated | 620 |
 Broker | 6% | $20 million | 5 years | 2 years | 500 |
 Provider | 8% and up | $20 million-plus | 25 years | Varies | Varies |
Lendio: Best Overall for Multiple Loan Options
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Rates & Terms | |
Starting Interest Rate |
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Loan Amount | Up to $5 million |
Loan Term |
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Maximum Loan-to-Value (LTV) Ratio | 90% |
Estimated Closing Costs & Fees | Varies based on the loan program |
Time to Fund |
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Qualifications | |
Credit Score |
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Time in Business |
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Annual Revenue |
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Debt Service Coverage Ratio (DSCR) | 1.25x |
Why We Like Lendio
When you work with Lendio, you’ll get access to its network of more than 75 lenders. A single application with this company gives you multiple chances to get approved and more options for the best rates and loan terms that suit your needs. Doing so can save you time and money from applying separately to multiple lenders on your own.
One downside is that you may not know the exact qualification requirements until after you apply. For instance, while some of the eligibility criteria are clearly stated for its CRE loans, it’s less transparent for its SBA loans. Things like credit score, time in business, and revenue requirements can vary depending on the lender you’re matched with.
You can apply online from the Lendio website. Doing so allows you to quickly compare multiple loan options. The application process can be completed in less than 15 minutes, and it comes at no cost and will not impact your credit score negatively. You can also find Lendio’s contact information to speak with a representative with any questions you may have.
U.S. Bank: Best for Long-term CRE or SBA Loans
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Rates & Terms | |
Starting Interest Rate | 6.99% |
Loan Amount |
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Loan Term | Up to 25 years |
Maximum LTV Ratio | 80% |
Estimated Closing Costs & 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 |
Time in Business | 2 years recommended |
Annual Revenue | None |
DSCR | 1.25x |
Why We Like U.S. Bank
U.S. Bank is our pick as the best provider for long-term CRE loans because of the competitiveness of its rates and overall loan terms. However, it does require you to have strong credit and finances to qualify. With that being said, U.S. Bank may have flexibility in its underwriting process, so you should not be discouraged from applying if you fall short of the eligibility criteria mentioned above.
The bank offers both CRE and SBA loans, each with a different set of qualification requirements and available loan terms. Its SBA loans may offer more competitive rates, although funding speeds can be slower. U.S. Bank is, however, an SBA-preferred lender. This means that it has the authority to make final credit decisions on behalf of the SBA, which can reduce the likelihood of any back and forth when it comes to getting your loan approved.
To start the application process, visit the U.S. Bank website and provide your contact information for a return call. You can also schedule a virtual or in-person appointment at a branch location.
JPMorgan Chase: Best for Multifamily Apartment Financing & Flexible Loan Terms
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Rates & Terms | |
Starting Interest Rate | 7% and up |
Loan Amount | $500,000 to $25 million-plus |
Loan Term | Up to 30 years |
Maximum LTV Ratio | 80% |
Estimated Closing Costs & 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 | None |
DSCR | 1.25x |
Why We Like JPMorgan Chase
JPMorgan Chase has a commercial term lending program that can finance apartment buildings with five or more units. In addition, it offers a wide range of options for repayment terms.
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.
SBG Funding: Best for Flexible Terms and Large SBA 7(a) Loan Amounts
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Rates & Terms | |
Starting Interest Rate | 11% (prime plus 2.5%) |
Loan Amount | Up to $10 million |
Loan Term | 2 to 10 years |
Maximum LTV Ratio | Typically 90% |
Estimated Closing Costs & Fees | 1.5% to 2.5% of loan amount |
Time to Fund | 30 to 90 days |
Qualifications | |
Credit Score | 650 |
Time in Business | 2 years |
Annual Revenue | Not stated, but must be considered profitable |
DSCR | 1.25x |
Why We Like SBG Funding
While most SBA 7(a) loans only offer up to $5 million in funding, SBG Funding offers double that amount. This makes it an excellent option if you want the benefits of an SBA loan but need more than what most other lenders may offer for this type of loan.
It also charges no prepayment penalties, which differs from many other lenders. However, repayment terms are shorter than typical as you are only given up to 10 years for your loan term.
Like many other providers, some qualification requirements are set in stone, while others will vary depending on the strength of your business finances, credit, and the lender you’re paired with. Some examples of items that may vary include your annual business revenue and the required down payment amount.
Head over to the SBG Funding website to apply. Doing so will have no negative impact on your credit score. If you like the options you’re given, you’ll then be asked to agree to a hard credit pull, which may then have an impact on your score. Applications should take no more than 10 to 15 minutes to complete.
RCN Capital: Best for Low Payments, Long Repayment Terms & Low Rates
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Rates & Terms | |
Starting Interest Rate | 6.475% to 11.29% |
Loan Amount | $500,000 to $10 million |
Loan Term | Up to 30 years |
Maximum LTV Ratio | 80% |
Estimated Closing Costs & Fees | 1% to 4% of the loan amount |
Time to Fund | 1 to 3 weeks |
Qualifications | |
Credit Score | 620, but varies based on the loan program |
Time in Business | Not stated |
Annual Revenue | Not stated |
DSCR | 1.25x is recommended but may vary |
Why We Like RCN Capital
RCN Capital is a commercial lender that offers loans for business purposes. Loans must be backed by non-owner 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:
- Short-term bridge loans
- Long-term rental loans
- Long-term multifamily loans
- New construction loans
- After repair value loans
Depending on the loan program you choose, options may also be available for purchases, rate and term refinances, and cash-out refinances. Some programs may also have a minimum required property value of either $50,000 or $100,000.
Businesses that work with RCN Capital will not typically have to pay any upfront fees during the pre-approval 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
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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 & Fees | 1% to 3% of the loan amount |
Time to Fund | 3 weeks |
Qualifications | |
Credit Score | 500 |
Time in Business | 2 years |
Annual Revenue | None |
DSCR | Not stated |
Why We Like 1West
1West is a loan broker with over 50 lenders in its network. It has one of the lowest credit score requirements in our guide, making it a good option if you have blemishes on your credit report.
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 first or second 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 Low Occupancy & Low Cash Flow Properties
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Rates & Terms | |
Starting Interest Rate | Not stated, but estimated from 8% to 11% |
Loan Amount | Up to $20 million-plus |
Loan Term | Typically up to 25 years, but may vary |
Maximum LTV Ratio | 80% |
Estimated Closing Costs & 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
Lima One Capital is a commercial lender that offers several different types of loans for multifamily properties. If you’re having trouble getting approved elsewhere due to property issues, Lima One Capital might be able to help, as it has programs to finance low cash flow properties, properties with low occupancy rates, and more.
The multifamily programs offered by Lima One Capital include:
- Value-add bridge: Ideal for distressed properties needing rent increases and capital expenditures
- Stabilized bridge: A good option for turn-key properties that need more seasoning or further tenancy before long-term takeout
- Long-term hold: Ideal financing for investors looking to hold and cash out multifamily properties for the long term
Depending on the loan program you choose, financing is typically available for up to 36 months for short-term loans and up to 25 years or more for long-term loans. Amortized and interest-only payment options can be selected, and non-recourse 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 also 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.
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
- Application, approval, and funding speed
- Customer reviews and ratings
Alternatives To a Commercial Real Estate Loan
If you’re unable to get a commercial real estate loan, you can still acquire commercial properties by using other types of financing. You should have an easier time getting a small business loan with the following options as they don’t carry the typical qualification requirements of a CRE loan:
- Hard money loans: Some of the best hard money lenders can provide short-term loans 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.
- Loans from friends and family: This can be a good option for businesses wanting to be able to negotiate the terms of a loan. In many ways, there are also no qualification requirements, although we do advise reading our recommendations for how to ask friends and family for 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 at least $50,000, and we recommend using one of the best ROBS providers to help you through the process to avoid compliance issues, fines, or penalties.
Before you apply for financing, see our guide on how to get a small business loan. It also includes tips on what to expect after applying.
Frequently Asked Questions (FAQs)
Commercial real estate loans typically have repayment terms of up to 25 years, requiring monthly payments. These loans may have an amortization length longer than the term of the loan, requiring a final lump sum balloon payment. Other loans may be fully amortized and structured such that the entire balance will be paid off as long as you make the monthly payments on time for the entire duration of the loan.
Yes, these loans can have stricter documentation and qualification requirements than other types of business loans. You’ll typically need a down payment of at least 10% to 20%, a strong credit score, and proof that your business is profitable.
Rates can range from around 3% to 7%. 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. You can check out our guide discussing the different types of CRE loans for more information on your available options, and what each can offer for rates and terms.
Bottom Line
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. The lenders on our list that have easy qualification requirements tend to have higher rates, while those with lower rates and fees often require you to have excellent business credit and finances. To get the best loan for your scenario, it’s important to shop rates with multiple lenders.
