How Commercial Loan Rates Are Determined
Interest rates for commercial real estate (CRE) transactions aren’t based on a one-size-fits-all formula. Instead, they’re influenced by a variety of factors unique to each deal—ensuring that each rate reflects the specifics of the transaction.
These factors include the borrower’s creditworthiness, the property’s location and physical condition, the loan-to-value ratio, the loan term, and current market conditions. This tailored approach ensures that every interest rate aligns with the unique risk profile of the CRE deal.
Key factors that may influence your rate include:
- Property Type: Multifamily, Retail, Industrial, etc.
- Location: Demographics, Metro vs. Rural
- Age & Condition: Physical state of the property
- Financial History: Performance of the property
- Strength of Sponsor or Tenant: Income reliability
- Credit Profile: Borrower or tenant history
- Loan-to-Value (LTV): Leverage on the property
- Experience: Borrower’s track record in the asset class
Commercial Property Rate Table
Rates auto-updated
| Property Type | Subtype | Max LTV / SBA | Amortization | Floating Rate | 5 year | 7 year | 10 year | 20 year | 30 year |
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Today's Indicative Commercial Loan Rates
Rates are updated daily and provided as indicative ranges. Final rates are determined by multiple factors including property type, leverage, borrower strength, and market conditions.
| Loan Program Type | Interest Rate |
|---|
All rates shown are indicative only and subject to change without notice. Final rates are based on full underwriting and lender conditions.
Interest Rate Calculator
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Amortization Calculator
What Is DSCR & Why It Matters
DSCR (Debt Service Coverage Ratio) measures your property's ability to cover annual loan payments. Lenders use this to determine if your cash flow is strong enough to support the loan.
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DSCR < 1.00:
Cash flow is not enough to cover loan payments. Financing will be difficult. -
DSCR 1.00 – 1.24:
Borderline. May qualify but expect stricter underwriting or lower LTV. -
DSCR ≥ 1.25:
Strong. Sufficient income to support the loan. Most lenders want 1.25+
Commercial DSCR Calculator
Frequently Asked Questions
FAQs for First-Time Borrowers
A fixed rate stays the same over the life of the loan, giving you predictable payments. A floating rate can go up or down based on market indices like SOFR or the Prime Rate.
We finance most income-producing commercial properties — like multifamily, hotels, retail centers, industrial buildings, gas stations, self-storage, agricultural, and more.
Yes. We offer no-cost, no-obligation prequalification. It helps you understand your financing options before committing to a full application or appraisal.
Bridge and hard money loans can close in 1–3 weeks. SBA and conventional loans may take 30–60 days depending on complexity and documentation.
You’ll typically need property financials, borrower financials, entity docs, and a credit profile. Don’t worry — we’ll guide you every step of the way.
FAQs for Professional Investors
Yes. We frequently structure interest reserves or allow for preferred equity in value-add, lease-up, or transitional deals.
Yes. Most loans are done in LLCs. We support SPE formation and non-consolidation requirements when requested by lenders.
Yes. For stabilized-to-be assets or heavy rehab projects, lenders may accept trailing 3 or 6 month P&Ls or underwritten pro forma supported by a realistic lease-up schedule.
Stabilized: up to 80% LTV. Value-add: typically 70–75% LTC depending on DSCR and location.
Yes. Many bridge and institutional programs are available as non-recourse, depending on deal size and asset type.
Still have questions?
We’re happy to walk you through your options. Talk to a real loan officer today.
Request a Quote Call (888) 556-4029