Commercial loan rates,
transparent and
current.

As of 2026, commercial real estate loan rates range from approximately 5.50% to 8.50%+ depending on property type, loan program, LTV, and borrower qualifications. Multifamily loans backed by Fannie Mae and Freddie Mac price at the lower end (5.50%–7.25%). SBA 504 loans offer long-term fixed rates typically in the 6.00%–6.75% range. Hard money and bridge loans carry rates from 7.99%–13%+ for distressed or transitional properties. Rates are benchmark-driven and update daily with movement in the 10-Year Treasury and SOFR. Use the rate finder above or contact a UFIG loan officer for a same-day quote specific to your deal.

Residential mortgage rates are heavily standardized — Fannie Mae and Freddie Mac set conforming guidelines and the market is extremely liquid. Commercial rates are individualized. Each loan is underwritten on the merits of the property (DSCR, occupancy, cap rate), the borrower (net worth, experience, credit), and the loan structure (LTV, term, recourse). Commercial loans are also typically shorter-term (5–10 year fixed with a balloon) versus the 30-year fixed common in residential lending. This means commercial borrowers face refinance risk at maturity that residential borrowers do not.

A fixed-rate commercial loan locks your interest rate for a defined term — typically 5, 7, or 10 years — providing payment certainty. A floating-rate (or adjustable) loan prices as a spread over a benchmark like SOFR or Prime and adjusts periodically (monthly, quarterly, or annually). Fixed rates suit long-term holds and stabilized properties where predictability matters. Floating rates are often used for bridge loans, construction, and short-term value-add situations where the exit is a sale or refinance within 1–3 years. When the yield curve is flat or inverted, floating-rate loans can temporarily offer lower starting rates than fixed options.

The spread is the lender's margin above the index rate. For example, if the 10-Year Treasury is at 4.40% and a lender quotes "Treasury + 175 bps," your rate is 6.15%. The spread reflects the lender's assessment of credit risk, property risk, and market conditions. Investment-grade NNN assets command spreads of 130–175 bps. Transitional multifamily might see 225–300 bps. Hospitality and special-use properties often see spreads of 300 bps or more. Negotiating the spread — not just the index rate — is where UFIG adds the most value on a transaction.

For recourse commercial loans — where you sign a personal guarantee — yes, your credit score matters. Lenders typically want 660+ for bank loans and 680+ for SBA programs. Credit scores below 650 push borrowers toward bridge or hard money options. For non-recourse loans (common in CMBS and for larger stabilized properties), the property cash flow, LTV, and DSCR matter far more than personal credit. If your credit is a concern, UFIG loan officers can structure transactions that minimize credit-related rate impact — for example, by increasing equity, adding a co-borrower, or using a bridge loan while you improve your profile.

A rate lock is a commitment from the lender to hold a quoted rate for a defined period — typically 30, 45, or 60 days — while underwriting and closing are completed. Rate locks are especially important in rising-rate environments where a 30-day delay could cost 0.25%+ on a large loan. CMBS and agency lenders typically require a rate lock deposit (refundable at closing) to hold terms. For smaller bank and SBA transactions, a soft lock or commitment letter may suffice. Ask your UFIG loan officer about rate lock timing early in the process — a well-timed lock on a $5M transaction at 5.75% vs 6.25% saves $25,000+ annually in interest expense.

Yield maintenance and defeasance are prepayment penalties that protect lenders from early payoff. With yield maintenance, if you pay off a loan early when rates have fallen, you owe a penalty equal to the difference in interest the lender would have earned. Defeasance replaces your mortgage with government securities that generate the same cash flow. Both are common in CMBS, life company, and longer-term fixed-rate loans. Step-down prepayment (e.g., 5-4-3-2-1% of balance) is more common in shorter-term bank loans. If you may sell or refinance within the loan term, negotiate prepayment flexibility upfront — it affects the loan's total cost significantly.

The borrowers who receive the best commercial rates combine several factors: (1) Lower LTV — more equity means less risk and better pricing; (2) Strong DSCR — properties at 1.35x+ coverage attract tighter spreads; (3) Demonstrated track record — lenders price experience; (4) Clean credit and financials — for recourse loans, personal credit and documented net worth matter; (5) Right loan type for the asset — matching your deal to the optimal lender channel (CMBS, agency, bank, SBA, life company) often saves more than any negotiating tactic; (6) Timing — rate locks and forward commitments can protect you in rising-rate markets. UFIG's correspondent network means we can access competing bids across all lender types simultaneously, so you see the market rather than a single quote.