Commercial Real Estate Loan Requirements
What you need to qualify for a commercial real estate loan, from credit and financial documentation to property requirements and deal structure.
Commercial real estate loan requirements vary by lender, loan program, and property type, but several core elements are consistent across most programs. Understanding these requirements before you begin the loan process helps you prepare a stronger application and avoid common delays.
Most conventional commercial lenders look for a minimum credit score of 660 to 680 for the primary borrower. SBA programs typically require 680 or higher. Private and bridge lenders may work with lower scores but charge higher rates. Beyond credit scores, lenders evaluate your overall financial profile including liquidity, net worth, and existing debt obligations.
Down payment requirements typically range from 10% to 30% of the purchase price depending on the program. SBA 504 loans allow as little as 10% down for owner-occupied properties. Conventional loans typically require 20% to 25% down. Investment properties and higher-risk asset classes may require 25% to 35% equity.
Documentation requirements include two to three years of personal and business tax returns, current financial statements, rent rolls or business financials, property appraisal, environmental review, and a personal financial statement. Having these documents organized before application significantly speeds up the process.
Frequently Asked Questions
What credit score is needed for a commercial real estate loan?
Most conventional commercial lenders require a minimum credit score of 660 to 680. SBA programs typically need 680+. Private lenders may work with lower scores but at higher rates.
How much down payment is required?
Down payment requirements range from 10% (SBA 504) to 30% or more depending on the program, property type, and risk profile. Most conventional loans require 20% to 25% down.