Commercial Mortgage Loans for Stabilized Properties
Finance or refinance income-producing and owner-occupied commercial property with long-term commercial mortgage options from banks, CMBS, credit unions, life companies, and portfolio lenders.
What Is a Commercial Mortgage?
A commercial mortgage is a loan secured by business or investment property rather than a personal residence. It can finance a stabilized income-producing property, an owner-occupied building, or a refinance of existing commercial debt. Bridge and construction loans are typically temporary; a commercial mortgage is commonly the longer-term loan a borrower refinances into and holds. Amortization generally runs 15 to 30 years, with fixed or adjustable rates depending on the lender and the deal. CapitalAx is a commercial mortgage broker, not a direct lender. We help borrowers compare options from conventional banks, CMBS conduits, credit unions, life insurance companies, and portfolio lenders across major commercial property types. Buying a stabilized asset, refinancing out of a bridge, or locking long-term financing on a property you have owned for years can all fit this category. Actual pricing, leverage, and approval depend on the property, borrower, market, and lender.
Key Terms
Who Is It For
- Investors acquiring stabilized income-producing properties
- Property owners refinancing short-term or maturing debt
- Business owners purchasing owner-occupied commercial real estate
- Portfolio holders consolidating properties under better terms
- 1031 exchange buyers needing fast permanent financing
Common Use Cases
- Acquisition of stabilized commercial properties
- Refinancing bridge loans or maturing debt into permanent financing
- Cash-out refinance to access equity for new investments
- Rate-and-term refinance to lower monthly payments
- Owner-occupied commercial real estate purchases
Borrower Scenarios
- An investor purchasing a 32-unit stabilized apartment building in Austin, securing a 10-year fixed-rate commercial mortgage with a long amortization through a regional bank that specializes in Central Texas multifamily.
- A property owner refinancing out of a 12-month bridge loan on a repositioned retail strip center, transitioning into a permanent commercial mortgage with a CMBS conduit at a 30-year amortization and non-recourse terms.
- A 1031 exchange buyer acquiring a single-tenant industrial building with a 10-year NNN lease, closing a commercial mortgage on a compressed schedule to meet the exchange timeline, with a life insurance company lender offering a 15-year fixed rate.
- A business owner purchasing the 12,000 sq ft office building their company has leased for a decade, using a conventional commercial mortgage with a standard down payment and a 20-year amortization to build equity instead of paying rent.
Why CapitalAx
Related Calculators
Related Loan Programs
Related Property Types
Related Guides
Frequently Asked Questions
What is a commercial mortgage?
A commercial mortgage is a loan secured by commercial real estate or business property. It is used to buy or refinance income-producing property, such as apartments, retail, industrial, office, mixed-use, or self-storage, as well as owner-occupied commercial buildings. Lenders evaluate the property, its income, the borrower, and the loan structure.
What are commercial mortgage loans used for?
Commercial mortgage loans can fund the purchase of stabilized commercial property, refinance a bridge loan or maturing debt, provide a rate-and-term refinance, or access equity through cash-out refinancing. A business owner may also use a commercial mortgage to purchase the building their company occupies.
How do I get a commercial mortgage loan?
Start by defining the property, purchase or refinance objective, requested loan amount, and timeline. Lenders commonly review property income and occupancy, leases or rent roll, operating statements, borrower financials, and the proposed loan structure. A commercial mortgage broker can help compare lender options, but each lender makes its own underwriting and approval decision.
What is a business mortgage?
Business mortgage is a common term for a commercial mortgage used to purchase or refinance property tied to a business. It may finance an owner-occupied office, medical practice, warehouse, restaurant building, or another commercial property. The best loan type depends on how the property is used and whether its income is stabilized.
What commercial mortgage lenders are available?
Commercial mortgage lenders include banks, credit unions, CMBS lenders, life insurance companies, and portfolio lenders. Each tends to favor different property types, loan sizes, terms, and borrower profiles. CapitalAx is a broker that helps borrowers compare available lending channels; it is not a direct lender.
What is the minimum down payment for a commercial mortgage?
Plan on 20% to 25% down for many commercial mortgages. Strong borrowers with stabilized properties can generally reach up to 80% LTV on certain programs. If you occupy the building yourself, SBA 504 can get you in with as little as 10% down. Every deal is underwritten on its own merits. Actual leverage and down payment requirements depend on the property, the market, and the lender.
What types of properties qualify for a commercial mortgage?
Many income-producing properties can qualify, including multifamily apartments, office buildings, retail centers, industrial warehouses, mixed-use, and self-storage. Lenders generally look for stable income and solid occupancy before writing permanent debt. Owner-occupied commercial real estate can also qualify through conventional or SBA programs.
How does a commercial mortgage differ from a residential mortgage?
The underwriting is the biggest difference. A commercial mortgage is judged on the property's income and cash flow, often through debt service coverage, rather than a personal paycheck alone. Expect shorter terms, often 5 to 10 years with a balloon, along with heavier documentation than a home loan. Larger deals may offer non-recourse financing, depending on the lender and structure.