Owner-occupied property
Purchase or refinance an office, medical building, retail location or operating facility used by your established business.
Commercial Property Financing
Commercial Real Estate Loans for Established Businesses
Purchase, refinance, renovate or construct owner-occupied and income-producing commercial property. Alta Business Loans evaluates the real estate, operating cash flow, sponsor experience and business objective to structure a finance request built for the transaction.
Initial pre-qualification has no application fee and does not require a hard credit pull.
Property-backed business financing
What is a commercial real estate loan?
A commercial real estate loan—also called a CRE loan or commercial mortgage—is financing secured by property used for business or investment purposes. Proceeds may support a purchase, rate-and-term refinance, cash-out refinance, renovation, construction or eligible property improvement.
Owner-occupied commercial real estate is evaluated primarily through the operating company’s cash flow and its use of the property. Investment property financing focuses more heavily on occupancy, tenant quality, leases, net operating income, debt service coverage ratio and the sponsor’s experience and liquidity.
Alta Business Loans operates as an experienced commercial finance brokerage. Our team evaluates the transaction, organizes the financing package, compares viable structures across a nationwide commercial finance network and coordinates the process through underwriting and closing. The lender independently determines eligibility, property value, credit approval, pricing and final terms.
Property types and financing purposes
What can a commercial real estate loan finance?
Eligibility depends on property use, condition, location, occupancy, income, transaction structure and the borrower’s financial profile.
Retail and mixed-use property
Finance neighborhood retail, multi-tenant centers or mixed-use buildings with qualifying commercial and residential income.
Warehouse and industrial
Acquire or improve distribution, manufacturing, flex-space, logistics and industrial facilities.
Multifamily property
Finance apartment buildings with five or more units using occupancy, rent roll, operating history and property cash flow.
Hospitality and special-purpose
Evaluate hotels, self-storage, automotive, childcare, assisted living and other specialized properties with industry-specific underwriting.
Construction and value-add projects
Structure ground-up construction, major renovation, repositioning or bridge financing around the budget, timeline and exit strategy.
Qualification overview
Typical commercial real estate loan requirements
Underwriting standards vary by property type, loan structure and lender. These ranges reflect common market starting points—not Alta requirements or guaranteed approval standards.
Established sponsor or operating history
Owner-occupied programs commonly favor businesses with at least two years of operations. Investment requests are strengthened by relevant ownership, management or property experience.
Personal and business credit
Many programs begin around a 650 personal credit score for principal guarantors. Competitive conventional transactions commonly favor credit near 680 to 700 or higher.
Borrower equity and loan-to-value
Conventional CRE loans commonly require 20% to 35% equity. Qualified owner-occupied SBA structures may begin near 10%; investment or higher-risk transactions may require more.
Cash flow and debt service coverage
Many programs look for DSCR near 1.20x to 1.25x or higher using business cash flow, property net operating income or both, depending on the transaction.
Occupancy, leases and tenant quality
Investment underwriting reviews rent rolls, lease terms, vacancy, tenant concentration and historical collections. SBA owner-occupied structures generally require at least 51% occupancy of an existing building.
Liquidity, net worth and reserves
Borrowers and guarantors may need funds for equity, closing costs, debt-service reserves, repairs and post-closing liquidity while maintaining appropriate financial capacity.
Appraisal and property due diligence
Property value, condition, marketability and intended use are verified through an appraisal and may require environmental, engineering, title, survey and insurance reviews.
Ownership, guarantees and recourse
Entity records, beneficial ownership and guarantor information are required. Personal guarantees, recourse provisions and financial covenants depend on the structure.
Commercial real estate LTV commonly falls around 65% to 80%, with qualified SBA owner-occupied structures reaching higher leverage. Property type, location, condition, occupancy, cash flow, sponsor experience, credit, liquidity and requested terms affect the final structure.
Choose the right capital structure
Conventional, SBA and bridge financing options
The right commercial property loan aligns the financing purpose, equity contribution, repayment source, property life cycle and expected hold period.
Conventional CRE financing
Conventional commercial mortgages can support owner-occupied and investment property purchases or refinances with fixed or variable pricing, negotiated amortization and defined maturity.
SBA owner-occupied financing
SBA 504 and SBA 7(a) structures may support eligible owner-occupied purchases, construction or improvements with lower equity requirements and longer repayment periods for qualified businesses.
Bridge and construction financing
Shorter-term financing can support acquisition, construction, lease-up, renovation or stabilization before a sale or permanent refinance. Interest may be charged on outstanding draws during construction.
Investment property and portfolio financing
Income-producing real estate is underwritten using property-level NOI, DSCR, occupancy, lease quality, debt yield, sponsor experience and market conditions. A portfolio structure may consolidate multiple properties under one facility when appropriate.
Refinance and cash-out strategies
A rate-and-term refinance may adjust pricing, maturity or amortization. A cash-out refinance may release eligible equity for improvements, acquisitions or another approved business purpose, subject to valuation and leverage limits.
Understand the repayment source
Owner-occupied vs. investment property financing
The property may look similar, but underwriting changes materially depending on whether the operating company occupies the building or tenants generate the primary repayment cash flow.
| Feature | Owner-occupied CRE | Investment CRE |
|---|---|---|
| Primary repayment source | Operating company cash flow | Property NOI and tenant income |
| Occupancy focus | Business use of the property; SBA rules may apply | Tenant occupancy, lease terms and vacancy |
| Core underwriting | Business performance, credit, global cash flow and property value | DSCR, NOI, debt yield, rent roll, tenants and sponsor strength |
| Common equity range | Often 10% to 25%, depending on conventional or SBA structure | Often 20% to 35% or more, depending on asset and risk |
| Common structures | Conventional mortgage, SBA 504 or SBA 7(a) | Conventional, bridge, construction or portfolio financing |
| Key property documents | Operating financials, purchase details and occupancy plan | Rent roll, leases, T-12 operating statement and property pro forma |
Financing equipment or another non-real-estate asset? Review our equipment financing guide.
Professional brokerage execution
How the commercial real estate loan process works
Alta’s commercial finance team builds a decision-ready request around the borrower, property, repayment source, capital structure and closing objective.
Submit the financing request
Provide ownership, operating history, property details, requested amount, transaction purpose and available financial information through Alta’s secure form.
Brokerage review and structuring
Our team evaluates cash flow, NOI, DSCR, LTV, credit, liquidity, experience and the financing objective to identify viable conventional, SBA or bridge pathways.
Credit and property underwriting
Alta coordinates financial documents and lender communication while appraisal, title, environmental, insurance and other due-diligence items are completed as required.
Review terms and close
Evaluate the approved amount, rate, amortization, maturity, equity, guarantees, covenants, closing costs and prepayment terms before executing the loan documents.
Evaluate the complete capital cost
Commercial real estate loan rates, fees and repayment
Pricing and terms are established through underwriting based on the borrower, property, leverage, repayment source and structure. Alta helps clients evaluate the complete obligation—not only the headline rate.
Fixed or variable interest rate
Confirm whether pricing is fixed or variable, the benchmark and margin, adjustment frequency, floor rate, default rate and whether a rate lock is available.
Amortization, maturity and balloon
Review the payment calculation, amortization period, loan maturity and any balloon balance. A 20- or 25-year amortization can have a shorter maturity requiring refinance or payoff.
Closing and due-diligence costs
Budget for origination, appraisal, environmental, engineering, title, survey, legal, filing, insurance and other disclosed third-party expenses.
Prepayment, recourse and covenants
Confirm prepayment penalties or yield maintenance, personal guarantees, recourse, financial reporting, DSCR or liquidity covenants and reserve requirements.
Frequently asked questions
Commercial real estate loan FAQs
Clear answers for established business owners and commercial property investors evaluating financing.
What is a commercial real estate loan?
A commercial real estate loan is financing secured by property used for business or investment purposes. It may be used to purchase, refinance, renovate or construct eligible commercial property. Repayment is evaluated using the operating business, the property's income, or both, depending on whether the property is owner-occupied or investment real estate.
What types of property can a commercial real estate loan finance?
Eligible property types may include owner-occupied office and medical buildings, retail centers, mixed-use property, warehouses, industrial facilities, multifamily property with five or more units, self-storage, hospitality and other special-purpose real estate. Eligibility depends on property condition, location, use, occupancy, income and the selected loan structure.
How much down payment is typically required for a commercial property loan?
Many conventional commercial real estate loans require approximately 20% to 35% borrower equity. Qualified owner-occupied SBA structures may begin around 10%, while investment property or higher-risk transactions may require 25% to 35% or more. The final equity requirement depends on loan-to-value, property type, cash flow, sponsor experience, liquidity and credit.
What credit score is typically needed for a commercial real estate loan?
Many commercial real estate programs begin around a 650 personal credit score for principal guarantors, while stronger conventional and bank requests commonly favor scores near 680 to 700 or higher. Credit history, business performance, property cash flow, liquidity, experience, leverage and the overall transaction are evaluated together.
What are LTV and DSCR in commercial real estate lending?
Loan-to-value, or LTV, compares the loan amount with the property's appraised value. Debt service coverage ratio, or DSCR, compares qualifying cash flow or net operating income with required annual debt payments. Conventional commercial real estate LTV commonly falls around 65% to 80%, and many programs look for DSCR near 1.20x to 1.25x or higher, but standards vary.
What documents are typically required for a commercial real estate loan?
Common documents include the application, entity and ownership records, business and personal tax returns, year-to-date financial statements, personal financial statements, debt schedules, bank statements, a purchase contract or current mortgage statement, property details, rent rolls, leases, historical operating statements and proof of equity. Appraisal, environmental, title, survey and insurance items are commonly completed during due diligence.
What is the difference between owner-occupied and investment commercial real estate financing?
Owner-occupied financing applies when the operating company uses a substantial portion of the property and repayment depends largely on business cash flow. Investment property financing is primarily underwritten on tenant income, occupancy, leases, net operating income and sponsor strength. SBA owner-occupied structures generally require the business to occupy at least 51% of an existing building.
How long does a commercial real estate loan take to close?
Commercial real estate loans commonly take several weeks to close because underwriting can include financial analysis, appraisal, title, insurance, environmental review and legal documentation. Construction, SBA, complex investment or special-purpose transactions may take longer. Timing depends on document readiness, property complexity and third-party reports.
Does Alta’s initial commercial real estate loan review require a hard credit pull?
Alta Business Loans does not perform a hard credit pull for its initial pre-qualification review. A financing company may request authorization for a credit inquiry later in underwriting before issuing final terms.
Plan your commercial property transaction
Start your commercial real estate financing review with Alta
Share the property, transaction objective, requested amount and available financial information. Our brokerage team will evaluate the request and outline the next documentation needed for a professionally structured financing package.
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No application fee. Financing is subject to property and business eligibility, credit approval, verification, appraisal, due diligence and underwriting.