Financing Commercial Real Estate in 2026
Commercial real estate (CRE) remains one of the best wealth-building vehicles in America. Whether you're buying your first rental property or expanding a portfolio worth millions, understanding your financing options is critical to maximizing returns.
Types of Commercial Real Estate Loans
1. DSCR Loans (Debt Service Coverage Ratio)
DSCR loans are the gold standard for investment properties. Instead of qualifying based on your personal income, the property's rental income qualifies you.
- Qualification: Property must generate 1.0-1.25x the monthly loan payment
- Down Payment: 20-25% typical
- Credit Score: 660+ preferred
- Best For: Investors with multiple properties, self-employed borrowers, those who can't show traditional income
2. Bridge Loans / Hard Money
Short-term financing (6-24 months) for properties that need work or don't yet qualify for permanent financing.
- Speed: Close in 7-14 days
- Rates: Higher (9-14%) but short-term
- LTV: Up to 75-80% of after-repair value
- Best For: Fix-and-flip, value-add projects, auction purchases
3. SBA 504 Loans
Government-backed loans for owner-occupied commercial properties — some of the best terms available.
- Down Payment: Just 10% (vs. 25-30% conventional)
- Rates: Below-market fixed rates
- Terms: 20-25 years
- Requirement: Must occupy 51%+ of the property
- Best For: Business owners buying their own building
4. Conventional Commercial Loans
Traditional bank loans for stabilized commercial properties.
- Down Payment: 25-35%
- Terms: 5-10 year terms with 25-year amortization
- Rates: 6.5-8.5% depending on property type and borrower strength
- Best For: Established investors with strong financials
How to Get Approved: What Lenders Want
- Property financials: Rent rolls, operating statements, cap rate analysis
- Personal financials: Net worth statement, tax returns, bank statements
- Experience: Track record with similar properties
- Business plan: Clear strategy for the property
- Skin in the game: Adequate down payment / equity
Why Slate Financial for Commercial Loans
Our AI-powered platform matches your deal with the right lender from our network of 50+ commercial lending partners. We specialize in creative deal structures that traditional banks won't touch.
- Deals from $100K to $50M+
- All property types: multifamily, retail, office, industrial, mixed-use
- AI underwriting for faster decisions
- Bridge-to-perm strategies for value-add deals
Submit your deal for a free analysis — we'll match you with the best financing options within 24 hours.
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David R. Bizousky
Founder & CEO, Slate Financial
David R. Bizousky is a financial services entrepreneur and the founder of Slate Financial, a leading alternative lending platform that has funded over $2.5 billion for 10,000+ businesses across all 50 states.