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Investment
Commercial Loans
"Financing for business properties."
Office buildings, retail centers, industrial properties, and multi-family 5+ units. Commercial financing for serious investors.
20–30%Min Down
680+Min Credit
$10M+Max Loan
Down payment and credit requirements vary by loan program, credit profile, occupancy, and property type. All loans subject to credit approval and program eligibility.
Commercial Loans Benefits
Everything you need to know about your benefits
$10M+ Loan Amounts
Large-scale financing for significant commercial investments
Multiple Property Types
Office, retail, industrial, multi-family all under one roof
Cash Flow Focused
Underwriting based on property income over personal income
Flexible Terms
5, 7 or 10 year terms with 20–30 year amortization
Tenant Income
Strong tenants and leases improve loan terms
Entity Ownership
Hold in LLC, LP, or corporation for asset protection
How It Works
Your path to homeownership in just a few simple steps
Identify the Property
Find a stabilized commercial property with strong tenants and leases
Analyze the Numbers
Review NOI, cap rate, DSCR, and expense ratios to ensure cash flow
Submit Package
Provide property financials, rent rolls, and borrower financial statements
Commercial Underwriting
Lender reviews property income, tenant quality, and borrower strength
Types of Commercial Loans
Choose the option that fits your situation
Office
Professional buildings, medical office, mixed-use with office components
Retail
Strip centers, single-tenant buildings, shopping centers
Industrial
Warehouses, manufacturing facilities, flex spaces
Multi-Family 5+
Apartment buildings, student housing, senior housing
⚠ Important to Know
Things to Consider
A reverse mortgage is a significant financial decision. Here's what you should understand before proceeding.
Property Income is Key
Commercial underwriting focuses mainly on NOI, DSCR and cap rate. Strong tenant leases and stable income are essential.
Balloon Payment Structure
Unlike residential 30-year fixed loans, commercial loans typically have 5–10 year terms with a balloon payment or refinance required.
Borrower Strength Matters
Lenders evaluate your net worth, liquidity, and experience in addition to property financials. Strong borrowers get better terms.
Recourse vs. Non-Recourse
Some commercial loans are non-recourse (property is only collateral), while others require personal guarantees. Larger loans may offer non-recourse.
HUD-approved counseling is required to ensure you fully understand these factors before proceeding.
📊 Investment Analysis
Understanding Cap Rate
How investors evaluate commercial property value and returns
The Formula
Cap Rate = Net Operating Income (NOI)
÷ Purchase Price
÷ Purchase Price
Example Calculation
Net Operating Income$250,000
Purchase Price$3,125,000
Cap Rate Result8.0%
What Cap Rate Tells You
Cap rate measures the relationship between a property's income and its purchase price. Different property types command different cap rates based on tenant stability, lease terms, and market demand.
Higher Cap Rate (7%+)
Higher potential returns, but often indicates older properties, less desirable locations, or higher vacancy risk.
Lower Cap Rate (4–6%)
Lower immediate returns, but typically premium locations, newer properties, and national tenants.
Important:
Cap rate alone doesn't determine a good investment. Always consider location, tenant quality, property condition, and market trends.
Market Cap Rates by Property Type
Typical ranges vary by property class and location (2026 averages)
Class A OfficeCap Rate Range5.5% – 7.5%Premium Tier
Class B/C OfficeCap Rate Range7.0% – 10.0%Higher Risk
Single-Tenant Retail (NNN)Cap Rate Range5.0% – 7.0%Stable
Strip Center RetailCap Rate Range6.5% – 9.0%Moderate Risk
Industrial WarehouseCap Rate Range5.0% – 7.0%Strong Demand
Mixed-UseCap Rate Range6.0% – 8.5%Moderate Risk
*Cap rates can vary significantly by market, property condition, and economic conditions. These are national averages for reference only.
Loan Details
Documentation Required
- Property financials (P&L, rent roll)
- Current lease agreements
- Borrower personal financial statement
- 2–3 years tax returns (personal and entity)
- Entity documents (operating agreement, articles)
- Property appraisal (commercial)
Eligible Property Types
- Office buildings
- Retail centers and strip malls
- Industrial warehouses and flex space
- Multi-family apartments (5+ units)
- Mixed-use commercial/residential
Additional Info
- Stabilized properties preferred
- Minimum DSCR typically 1.20–1.25
- Entity ownership required
- Environmental review may be required
Commercial vs. Residential Loans
| Feature | Commercial Featured | Residential Investment |
|---|---|---|
| Primary Focus | Property income (NOI, cap rate) | Borrower income (DTI, W-2s) |
| Loan Terms | 5–10 year balloons | 30-year fixed available |
| Down Payment | 20–30% | 15–25% |
| Amortization | 20–30 years | 30 years |
| Rate Structure | Often adjustable after term | Fixed or ARM options |
| Entity Ownership | Required (LLC, LP, Corp) | Optional (personal common) |
| Property Size | 5+ units, commercial use | 1–4 units only |
*Rates and terms subject to change. Contact us for current offers.
💬 FAQ
Frequently Asked Questions
Common questions about Commercial Loans
What's the difference between commercial and residential loans?
Commercial loans focus on property income (NOI, cap rate, DSCR) rather than borrower income. They have shorter terms (5–10 years vs 30), require entity ownership, and involve more detailed property underwriting.
What property types qualify for commercial financing?
Office buildings, retail centers, industrial properties (warehouses, manufacturing), and multi-family with 5+ units. Mixed-use properties with commercial components also qualify.
How does commercial loan amortization work?
Commercial loans typically have 20–30 year amortization schedules but 5–10 year terms. After the term, you'll need to refinance or pay the balloon balance. This is different from residential 30-year fully amortizing loans.
What is DSCR in commercial lending?
Debt Service Coverage Ratio measures if property income covers the loan payment. Most commercial lenders require 1.20-1.25x DSCR (property income is 120-125% of the payment).
Do I need to put the property in an LLC?
Yes, commercial lenders typically require entity ownership (LLC, LP, or corporation). This provides liability protection and is standard practice for commercial real estate.
What net worth and liquidity do I need?
Lenders typically want to see net worth equal to the loan amount and liquidity (cash reserves) of 6-12 months of payments. Strong borrowers may qualify for better rates and terms.
Explore Other Options
Not quite right? Check out these alternatives
Conventional Loan
The classic choice. No mortgage insurance with 20% down and competitive rates for strong credit.
Learn More →FHA Loan
Low down payment, flexible credit requirements — a common route for first-time buyers.
Learn More →VA Loan
Zero down and no monthly mortgage insurance for eligible veterans. VA funding fee may apply.
Learn More →
NEXA Lending LLC
AZMB #0944059
An Equal Housing Lender All Rights Reserved. © 2026
Contact Us
Branch:
3337 W 95th Street,
Evergreen Park, IL 60805
Evergreen Park, IL 60805
Corporate:
5559 S Sossaman Rd
Building 1 #101,
Mesa, AZ 85212
Building 1 #101,
Mesa, AZ 85212
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