Definition: A commercial loan is a loan between a business and a bank to fund capital expenditures and/or operating costs. Commercial loans come in two forms - owner-occupied mortgages and investment mortgages. If the property's sponsor(s) use over 50 percent of the building's useable square footage, the commercial loan is said to be a owner-occupied commercial loan. Otherwise the commercial loan is considered to be an investment mortgage. To be considered a commercial loan the property being funded must be zoned commercial and not residential.
Listed below are a few resources that may be beneficial in your understanding of commercial loans and how they work.
For information on how to qualify for a commercial loan please visit our 5 steps to get a commercial loan article. For other questions in the requirements of getting a commercial loan, you may also visit our faqs page, or send us a message through our contact form.
For current commercial mortgage rates you can visit our commercial loan rates page or our apartment loan rates page if the property is multifamily.
The types of commercial loans available are listed as follows:
To find out what type of loan you may qualify for, you may visit our loan finder tool.
To apply for a commercial loan, simply fill out our free quote request. You may also use our free commercial loan forms during the process to help expedite your loan application.
USDA Loans. Commercial Loan Direct - lowest closing costs on USDA commercial real estate loan financing programs - best interest rates on USDA mortgages
Affordable housing financing. #1 Ranked online lender offering lowest rates and closing costs
Online Commercial mortgage real estate lender. Business mortgages and commercial loans nationwide. Save with low rates and closing costs. Ranked #1 Online Mortgage Banker
Church Commercial Real Estate Loans and Mortgages. Save with no points and low closing costs. Offering financing lending nationwide. Mortgages at low rates.
SBA 7a loans from Commercial Loan Direct. Offering lowest rates and lowest closing costs on SBA 7-a commercial loans
Self Storage Financing and Self Storage Commercial Loans by Commercial Loan Direct. Commercial mortgage lender offering self storage building financing. Offering lowest rates and lowest closing costs.
Not all Lenders or loan programs are created equal and each program has it’s own specific guidelines. That being said, here is a general list of the items you should consider preparing in advance of contacting Lenders for a loan quote*:
Calculate your debt service coverage ratio for commercial loans. Use our calculator to calculate the NOI needed for a selected DSCR.
