Commercial real estate is financed six main ways: conventional bank loans for stabilized properties, SBA 504 and 7(a) loans for owner-occupants, bridge loans for speed and transitional deals, agency financing for multifamily, and DSCR-based loans underwritten on property income. The right one depends on your property, timeline, occupancy, and documentation appetite. The chart below puts them side by side.
| Loan type | Best for | Typical LTV | Term and structure | Speed to close | Documentation | Watch for |
|---|---|---|---|---|---|---|
| Conventional bank | Stabilized, income-producing property with a clean file | 65 to 75% | 5 to 10 year terms, 20 to 25 year amortization, often a balloon | 45 to 90 days | Full: tax returns, bank statements, PFS, property financials | Balloon maturity; strict property and credit boxes |
| SBA 504 | Owner-occupied purchase of real estate or major equipment | Up to 90% financing (10% down standard) | Long fixed terms; first mortgage plus SBA-backed second | 45 to 90+ days | Full, plus SBA forms including Form 413 | 51% occupancy required (60% new construction); process time |
| SBA 7(a) | Owner-occupants bundling real estate with other business needs | Up to 90% financing | Up to 25 years for real estate, fully amortizing | 45 to 90+ days | Full, plus SBA forms | Occupancy requirement; guarantees are standard |
| Bridge loan | Speed, transitions, value-add, deals outside bank boxes | 65 to 75% | 6 to 36 months, interest-only, repaid at exit | Under a month; fastest 3 to 5 days | Light: property-focused; often no tax returns | Higher rate (7 to 13%) and 1 to 3 points; needs a clear exit |
| Agency (multifamily) | Stabilized apartment properties | Up to 75 to 80% | Long fixed terms; strong prepayment structures | 60 to 90+ days | Full property and sponsor file | Multifamily only; stabilization required |
| DSCR-based | Investors whose tax returns understate real cash flow | 65 to 75% | Varies; underwritten on property income coverage | 3 to 6 weeks | Light: property income, not personal income | Coverage ratio drives everything; check yours first |
Two tools make this chart concrete for your deal: the calculators put numbers on bridge costs, cash to close, and DSCR, and the personal financial statement builder prepares the document the full-documentation paths all require. For deeper reading, start with how commercial financing works, bridge versus bank, and SBA 504 versus 7(a).
Ranges above are illustrative and market conditions change. When you want real numbers on a specific deal, send it over and we will tell you which of these paths actually fits.
Every figure here is for information only. It is not a commitment to lend, an offer of credit, or a quote. For numbers specific to your situation, call 801-706-2802.
