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 loan provider for any need, including retail shopping centers, office buildings, and mixed use buildings. Read below to find out which providers we recommend.
Best Commercial Real Estate Loan Provider
| What’s it Best For? | |
|---|---|
| US Bank | (Best overall) Long-term owner occupied commercial real estate loans without a limit. |
| JP Morgan Chase | Real estate owners needing up to $25 million for multifamily projects. |
| Wells Fargo | Experienced developers looking to finance large projects. |
| Liberty SBF | A good option to explore for SBA 504 Loans up to $14 million. |
| Northeast Bank | A good alternative option for niche or high risk industries. |
| SmartBiz | Loan provider platform that connects you with fast SBA 7a commercial real estate loans up to $5 million. |
How We Evaluated Commercial Real Estate Loan Providers
When considering the best commercial real estate loan providers, we looked at the top lenders and took the following things into consideration:
- Loan provider experience
- Costs and rates
- Repayment terms
- Qualifications
- Speed of funding
- Why you may want to use the funds
After taking all of these things into consideration, we found that US Bank is the best overall commercial real estate (CRE) provider. They are the most versatile of all the options, offering everything from a conventional CRE loan to a bridge loan. Their lending solutions meet the needs of most borrowers, and they have 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 right commercial real estate loan provider will ultimately depend on your specific needs. Read about the costs, terms, and qualifications of each option below, as well as where to get the loan that’s best for you.
Best Overall Commercial Real Estate Loan Provider: US Bank
US Bank is a large nationwide traditional lender that offers a variety of commercial real estate (CRE) loans. They offer traditional and SBA owner-occupied commercial real estate loans with no funding limit as well as financing for investment properties. As a large nationwide bank, they can generally help most qualified borrowers, regardless of your CRE needs.
Who US Bank is Best For
A commercial real estate loan at US Bank can be right for anyone who needs real estate financing. Specifically, they are best for borrowers who need a large loan amount because they don’t have a maximum loan size. They’re a good fit for prime borrowers looking for the lowest possible interest rates and longest repayment terms.
US Bank Costs
The costs of a US Bank loan are going to 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 4.75%.
The general costs for a commercial real estate loan from US Bank are:
- Loan to Value (LTV): Up to 80%
- Down Payment: 20 – 35%
- Interest Rates: 4.75 – 6.75%, variable or fixed
- Origination Fees: 0 – 1%
- Closing Costs: 2 – 5%
US Bank Terms
A US 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 up to 15 – 25 years.
The general terms of a commercial real estate loan from US Bank are:
- Maximum Funding Amount: No limit
- Repayment Terms: 5 – 25 years, fully amortized
- Time to Funding: 30 – 45 days, possibly more for the SBA loan
US Bank Qualifications
The minimum qualifications for a US Bank commercial real estate loan are a 700+ credit score, at least 1 year in business, and a 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.
The general qualifications for a commercial real estate loan from US Bank are:
- Credit Score: 700+
- Years in Business: 1 – 5 Years
- Debt Service Coverage Ratio (DSCR): 1.25+
- Collateral: May require additional collateral
- Owner-Occupied: 51%+ for traditional and SBA loans
Best CRE Loan Provider for Multifamily Projects: JP Morgan Chase
JP Morgan Chase is a nationwide lender that invests millions of dollars into commercial real estate loans every year. They focus on multifamily, industrial, office, retail, or mixed use properties and projects, which makes them a good fit for many small business real estate owners and developers. They can fund projects up to $25 million and have competitive rates to most other large real estate investors.
Who JP Morgan Chase is Best For
Real estate owners looking to fund a multifamily project up to $25 million should look at JP Morgan Chase, as they’re one of the best multifamily lenders in the country. They also offer flexible options for projects they believe 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.
JP Morgan Chase Costs
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, they’ll fund up to 80% of the value of the property with competitive interest rates similar to SBA loan rates.
The general costs of a bridge loan from JP Morgan Chase are:
- Loan to Value (LTV): Up to 80%
- Down Payment: 20 – 30%
- Interest Rates: 5 – 9%
- Fees: 1 – 3%
- Closing Costs: 1 – 2%
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. They pride themselves on having a streamlined application process that can typically have you fully funded in about 45 days.
The general terms of a commercial real estate loan from JP Morgan Chase CRE loan are:
- Maximum Loan Amount: $25 million for multifamily projects, $15 million for others
- Repayment Terms: 1 – 10 Years
- Time to Funding: ~45 Days
JP Morgan Chase Qualifications
A loan from JP Morgan Chase isn’t easy to qualify for and they don’t post many of their minimum requirements. Instead, they look at each investment opportunity separately to determine if it’s worth their investment. However, at a minimum, you’ll need to be a prime borrower with a 1.25+ DSCR. There aren’t any “time in business” requirements and you won’t need any additional collateral.
The general qualifications for a CRE loan from JP Morgan Chase are:
- Credit Score: Prime Borrowers
- Years in Business: No specific requirement
- Debt Service Coverage Ratio (DSCR): 1.25+
- Collateral: No additional collateral required
- Owner-Occupied: 51%+
Another CRE Loan Provider for Experienced Real Estate Owners: Wells Fargo
Wells Fargo is routinely one of the largest providers in commercial real estate every year. They look for experienced real estate developers or owners who need to fund large projects. Their maximum financing amount goes up to $500 million, but deals that large are rare. They not only work with individual real estate owners but also with Real Estate Investment Trusts (REITs) and real estate funds looking to raise money for one-off projects.
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. They’re one of the largest commercial real estate loan providers in the country and specialize in helping get these larger projects to closing.
You can also get a smaller loan for the real estate your business occupies up to $750k, which is much easier to qualify for and quicker to fund. For these loans, you can walk into any Wells Fargo bank to apply, but we’re going to focus on the larger loans Wells Fargo is popular for throughout the rest of this section.
Wells Fargo Costs
The costs of a Wells Fargo CRE loan is going to have smaller fee percentages than other loan providers because they focus on larger loan amounts. Their LTV and interest rates are competitive with other large national loan providers.
A CRE loan from Wells Fargo typically has these costs:
- Loan to Value (LTV): Up to 80%
- Down Payment: 20-30%
- Interest Rates: 5 – 10%
- Fees: 1 – 3%
- Closing Costs: 0.5 – 1%
Wells Fargo Terms
Wells Fargo virtually has no lending maximum because they can lend up to $500 million for a single project. You’ll typically get funded within 4 – 6 weeks and can repay the loan over the next 5 or 10 years.
A Wells Fargo CRE loan typically has these terms:
- Maximum Loan Amount: $500 million
- Repayment Terms: 5 – 10 Years (up to 20 years for large projects)
- Time to Funding: 4 – 6 Weeks
Wells Fargo Qualifications
Since Wells Fargo focuses on experienced real estate developers and owners, they’re less focused on your personal credit profile and instead value what’s on your balance sheet. They want to lend to a strong real estate company that can display their past success and conveys to Wells Fargo how the financed project is going to be successful.
A Wells Fargo CRE loan typically has these qualifications:
- Credit Score: N/A
- Years in Business: Not set requirement, but need have successful RE experience
- Debt Service Coverage Ratio (DSCR): 1.25+
- Collateral: May require additional collateral from your other real estate assets
- Owner-Occupied: Not required
A Good Option For SBA 504 Commercial Real Estate Loans: Liberty SBF
Liberty SBF is a nationwide commercial real estate loan provider that focuses on SBA CDC/504 loans. They exclusively work on commercial real estate (CRE) deals above $1 million and can fund loans up to $14 million. They typically finance the acquisition and/or refinancing of owner-occupied, hospitality, multi-use, and special use projects.
Keep in mind that SBA 504 loans have 3 different portions. You’ll borrow 50% from a traditional bank lender, 40% from a certified development company (CDC), and you’ll put 10% as a down payment. Read our guide to SBA 504 loans to learn more.
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.
Liberty SBF Costs
The costs of a Liberty SBF loan are going to be similar to other loan providers offering SBA 504 loans. Like any other SBA loan type, the differences will be in the packaging fees charged by your lender. Liberty SBF charges fees up to 3.75% on their 504 loans, with up $13K additional costs for closing and appraisals or environmental reports.
The general costs for an SBA 504 loan from Liberty SBF are:
- Loan to Value (LTV): Up to 90%
- Down Payment: 10 – 20%
- Interest Rates: 4 – 6%, variable or fixed
- Fees: Up to 3.75%
- Closing Costs: $3K processing fee & $10K expense deposit
Liberty SBF Terms
With an SBA 504 loan from Liberty SBF, you can borrow up to $14 million and spread out your payments up to 25 years. For an SBA 504 lender Liberty SBF is faster than most, typically getting you funded in around 30 days.
The general terms for an SBA 504 loan from Liberty SBF are:
- Maximum Loan Amount: $14 million
- Repayment Terms: Up to 25 years
- Time to Funding: 30 day
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+, 2+ 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.
The general qualifications for an SBA 504 loan from Liberty SBF are:
- Credit Score: 680+
- Years in Business: 2+ Years
- Debt Service Coverage Ratio (DSCR): 1.20+
- Collateral: No additional collateral required
- Owner-Occupied: 51%+
Commercial Real Estate Loan Provider Option for Niche Industries: Northeast Bank
Northeast Bank is a fairly new player in the CRE space but they offer 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 they’re a traditional lender, they typically fund their loans much faster than other traditional providers. However, they’re a newer player in the space so it’s still unclear how strong their program is.
Northeast Bank specializes in lending to risky or very niche industries. Some of the industries they specialize in include:
- Hotels
- Health Care Facilities
- Gas Stations
- Skilled Trades
- Retail
The types of loans Northeast Bank offers include:
- SBA 7a
- SBA 504
- SBA Express
- Commercial Loans Secured w/Real Estate
- Conventional Loans to Buy Commercial Real Estate
- Refinance
- Portfolio Loans
- Bridge Loans
- USDA
Who Northeast Bank is Best For
A commercial real estate (CRE) 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.
Northeast Bank Costs
Northeast Bank has competitive costs on their commercial real estate loans. However, their costs vary based on what type of loan you’re getting. For example, their SBA loan costs are going to be similar to any other SBA loan, while their bridge loan is going to cost more than an SBA option.
General costs for a Northeast Bank commercial real estate loan are:
- Loan to Value (LTV): Up to 80%
- Down Payment: 20 – 30%
- Interest Rates: As low as 5.5%, typically variable
- Fees: 0 – 3.5%
- Closing Costs: 0 – 4%
Northeast Bank Terms
You can initially borrow up to $12 million from Northeast Bank for a CRE loan. However, long term customers can qualify for up to $20 million. The term of your loan depends on what loan you get but can be up to 25 years.
General terms for a Northeast Bank commercial real estate loan are:
- Maximum Funding Amount: Up to $12 million
- Repayment Terms: Up to 25 years
- Time to Funding: 30 – 40 days, but significantly less for their bridge loan
Northeast Bank Qualifications
The minimum qualifications for a Northwest Bank commercial real estate loan are a 680+ credit score, 2+ years in business, and a 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.
General qualifications for a Northeast Bank commercial real estate loan are:
- Credit Score: 680+
- Years in Business: 2+ Years
- Debt Service Coverage Ratio (DSCR): 1.25+
- Collateral: Might require additional collateral
- Owner-Occupied: 51%+ for traditional and SBA loans
Online Commercial Real Estate Loan Provider for SBA 7a Loans: SmartBiz
SmartBiz is an online SBA loan provider who offers SBA 7a commercial real estate loans up to $5 million. They work directly with lenders and match them based on your unique needs, which speeds up the SBA loan process and improves your chances of getting funded.
They’re an up and coming commercial real estate provider that embraces technology. In fact, their technology is helping to revolutionize the under $350k market. If you’re looking for an SBA loan for your commercial real estate project, SmartBiz is an interesting option to check out because they’re great at funding working capital loans under $350k, and they also offer SBA 7a CRE loans up to $5 million.
Who SmartBiz is Best For
Prime borrowers looking to borrow up to $5 million for their commercial real estate project through the SBA loan guarantee program who need to be funded quickly. These are long term loans with low interest rates but can be difficult to qualify for. Their online technology focused lending practice makes this an interesting choice to check out for smaller CRE loans.
SmartBiz Costs
Most SBA loans have similar costs regardless of what lender you end up going with. Where costs vary is with potential loan packaging fees. SmartBiz fees can be as low as 1% plus closing costs of about $5,000.
The general costs of an SBA CRE loan from SmartBiz are:
- Loan to Value (LTV): Up to 90%
- Down Payment: 10 – 30%
- Interest Rates: 5.75 – 8%, variable or fixed
- Fees: 1 – 4.75%
- Closing Costs: ~$5,000
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 they will get you funded faster than any SBA loan provider we’ve seen, typically in as quick as 30 days.
The general terms of an SBA CRE loan from SmartBiz are:
- Maximum Loan Amount: $5 million
- Repayment Terms: Up to 25 years
- Time to Funding: 30 day
SmartBiz Qualifications
SmartBiz qualifications are very similar to any SBA loan qualification requirements. At a minimum, you must have a credit score of 680+, 2+ years in business, and a DSCR of 1.25+. SmartBiz doesn’t require any additional collateral other than the real estate you’re financing.
The general qualifications of an SBA CRE loan from SmartBiz are:
- Credit Score: 680+
- Years in Business: 2+ Years
- Debt Service Coverage Ratio (DSCR): 1.25+
- Collateral: No additional collateral required
- Owner-Occupied: 51%+
Bottom Line – Best Commercial Real Estate Loan Provider
Many of the best commercial real estate loan providers are large national banks like Wells Fargo and JP Morgan Chase. Others are newer players in the space that are making a name for themselves with a specific lending niche, like SmartBiz with fast SBA 7a CRE loans.
Our recommended best commercial real estate loan provider for most commercial real estate loans is US Bank. They have 24 offices nationwide and fund a variety of options for your project to help you purchase, refinance, or improve your property. They offer competitive rates and can get you funded in as quick as 30 days.
Mahendra Reddy
March 17, 2018 at 3:15 amVery insightful with good enough details. Thank you.
Adam Stevens
September 6, 2017 at 12:42 amYour 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
October 13, 2017 at 7:28 pmThanks Adam! Appreciate it!