Commercial Real Estate Loans  ·  Licensed in NJ, CT & FL  ·  NMLS #1630225

Commercial Real Estate Loans — Financing to Buy or Refinance Income Property

Commercial real estate loans let you buy or refinance income-producing property — apartment buildings, mixed-use, retail, office, industrial, self-storage. The property’s income does most of the qualifying, so the deal has to work on its own numbers before anything about you matters. Mortgage-World.com (NMLS #1630225) is a licensed mortgage broker in New Jersey, Connecticut, and Florida.

Last updated September 2026 · reviewed by a licensed mortgage broker

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★★★★★ 5.0 on GoogleNMLS #1630225 · verify on NMLS Consumer AccessLicensed in NJ · CT · FL (FL MLB 1987)Family owned since 2017 · Ridgefield, NJ
680Min Credit Score
Commercial
20-25%Minimum Down
By Property Type
DSCRWhat Qualifies
Its Own Income
5+Units
Is Commercial

Commercial Real Estate Loans

What Is a Commercial Real Estate Loan?

A commercial real estate loan is financing used to buy, refinance, or cash out an income-producing property rather than a primary residence. The property itself is the collateral, and its ability to generate income is central to approval. Because these loans are underwritten on the numbers of the deal — the rents, the expenses, and the value — they work differently from the home loan you may be used to, and the right structure depends on the property type and your goals.

Commercial property is financed through several channels — bank programs, private capital, and agency options like Freddie Mac Multifamily for apartment buildings. Which one fits depends on the property type, its income, and whether you are buying or refinancing. Acquiring your first small apartment building and refinancing a retail center out of a maturing loan are different problems, and they do not always land in the same place.

Property Types

Commercial Property We Finance

Commercial real estate loans cover a wide range of income property. The most common types we place include:

Property Type Examples
Multifamily / Apartments 5+ unit apartment buildings, portfolios
Mixed-Use Retail or office on the ground floor with apartments above
Retail Strip centers, single-tenant retail, shopping complexes
Office Professional and medical office buildings
Industrial Warehouses, flex space, light industrial
Self-Storage Storage facilities and portfolios
Specialty Mobile home parks, student housing, hospitality, restaurants

If your property produces income and isn’t your primary home, there is almost always a commercial or investment program that fits — including 1–4 unit rentals, which can often be financed with a DSCR loan.

How It Works

How Commercial Loan Qualifying Is Different

The biggest surprise for first-time commercial borrowers is how much the property matters compared to the borrower. A few key differences from residential lending:

The property’s income qualifies the loan

Lenders look at the property’s net operating income against the loan payment — the debt-service coverage ratio (DSCR). A property that comfortably covers its own payment is the foundation of approval.

Loan-to-value is typically lower

Commercial loans generally require a larger down payment than a home loan, so plan on more equity in the deal. The exact figure depends on the property type, its income, and the program.

Terms are structured differently

Commercial loans often carry shorter fixed terms with a balloon or reset, and some amortize over a longer schedule than the term itself. We walk you through the structure before you commit.

Your experience and reserves count

Lenders also weigh your credit, liquidity, reserves, and track record as an owner or operator — especially on larger or specialty properties.

Ways to Finance Commercial Property

Commercial real estate loan to purchase an income property

Purchase
Acquire an income property
Refinance a commercial real estate loan

Refinance
Lower the rate or pull cash out
Bridge to permanent commercial property financing

Bridge to Perm
Reposition, then move to long-term financing

Five or more units?
Start your commercial application

Before You Start

What Happens After You Apply

  1. You send the application

    A few minutes online. No documents at this stage.

  2. A licensed loan officer calls you

    Someone on our team covering your state.

  3. We ask for documents and pull credit

    Only once you have decided to move forward.

  4. You get an approval to shop with

    Typically back within the hour.

FAQ

Commercial Real Estate Loan FAQ

What qualifies as a commercial real estate loan?
It’s financing on income-producing or non-owner-occupied property — apartment buildings, mixed-use, retail, office, industrial, self-storage, and similar. The property’s income is central to how the loan is underwritten, unlike a loan on your primary home.
How much do I need to put down on a commercial property?
Commercial loans typically require more equity than a home loan — plan on 20-25% down, with the exact figure set by the property type, its income, and the program. We’ll review your specific deal and tell you what to expect before you make an offer.
How does the lender decide if my property qualifies?
The main test is the debt-service coverage ratio — whether the property’s net income comfortably covers the loan payment. Your credit, reserves, and experience as an owner also factor in, especially on larger properties.
Can I refinance a commercial property or take cash out?
Yes. Commercial real estate loans can be used to refinance into a better rate or term, or to pull cash out of built-up equity for improvements or another acquisition — subject to the property’s income and value.
Do you finance small properties, like a 2–4 unit rental?
Yes. Smaller 1–4 unit rentals can often be financed with a DSCR loan, which qualifies on the property’s rent rather than your personal income. Larger 5+ unit and commercial properties use commercial programs.
What credit score do I need for a commercial loan?
Commercial programs start at a 680 credit score, and you should plan on 20-25% down depending on the property type. Your credit matters less here than on a home loan, because the property has to carry the debt first. It is not ignored, though, and it moves your pricing.
Will my commercial loan have a balloon payment?
Often, yes, and it is the norm rather than a trap. Commercial loans commonly carry a shorter fixed term than the schedule the payment is calculated on, so the balance comes due at the end of the term. It means your exit matters: you plan to refinance, sell, or pay it off before that date. Ask what the term is and what the amortization is as two separate questions, because they are rarely the same number.
What is a bridge-to-perm loan?
Short-term financing that carries a property through a repositioning — filling vacancy, finishing renovations, getting the rent roll stable — and then converts to long-term financing once the numbers support it. It costs more while it runs. It exists because a property that does not yet cover its own payment cannot qualify for permanent financing, and waiting is not always an option.
What will the lender ask for on a commercial deal?
The property first: current rents, operating expenses, and a value. Then you — credit, liquidity, reserves, and your track record owning or operating similar property. On larger or specialty assets the experience question gets heavier, and on a first commercial purchase it is usually the part that takes the most explaining.
Is a five-unit building commercial or residential?
Five units and up is commercial. One to four units is residential, even when every unit is rented, which is why a small rental portfolio often finances better as a DSCR loan than as a commercial one. The line is the unit count, not who lives there.

Related Resources

Which Route Fits the Property?

CommercialFive or more units, and every non-residential typeYou are hereDSCROne to four units, qualified on the rentCompareBank statementWhen the income is yours, not the property’sCompareCondoWarrantable and non-warrantableCompare
Related Commercial ProgramsDSCRGet pre-approved
Commercial Real Estate Loans — Mortgage-World.com, NMLS #1630225Mortgage-World.com
Licensed mortgage broker · NMLS #1630225

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Licensed in
NJ · CT · FL
Broker license
NMLS #1630225
Florida license
MLB 1987
Family owned since
2017
Office
Ridgefield, NJ

Send us the deal, not your life story

Property type, purchase price or current value, and the rents it collects. That is enough for a licensed loan officer to tell you whether it pencils and roughly what structure fits.

What You Need
✓680 minimum credit score
✓20-25% down, by property type
✓The property carries the file
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Chris Luis, Broker/Owner of Mortgage-World.com

Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author

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