Question 1

What counts as a commercial loan?

Accepted Answer

Generally, financing for property that's primarily business-oriented: apartment buildings with 5 or more units, mixed-use buildings, retail, office, industrial, and buildings a business buys to operate from. Rentals with 1–4 units usually stay on the residential side — often a DSCR loan — and we handle those too, so you don't have to guess which bucket your property falls in.

Question 2

How is qualifying different from a home loan?

Accepted Answer

The building carries more of the weight. Lenders focus on the property's net operating income and how comfortably it covers the proposed payment, alongside your experience, credit, and reserves. Terms are also more negotiable than residential loans — which is exactly where having a broker compare offers pays off.

Question 3

How much do I need to put down?

Accepted Answer

Most commercial purchases land somewhere between 25% and 35% down, depending on the property type, its income, and the lender. Strong multifamily deals tend toward the lower end; specialty properties ask for more. We'll give you a realistic read on your specific deal before you write an offer.

Question 4

What loan terms should I expect?

Accepted Answer

Commercial loans often carry a 5-to-10-year term with a longer amortization, which means a balloon balance comes due at maturity — refinancing at that point is normal and planned for. Prepayment penalties are also common. None of that is a problem if you see it coming, and we make sure you do.

Question 5

Can I buy the building my business operates from?

Accepted Answer

Yes — owner-user purchases are a big part of commercial lending, and some programs are built specifically for them. Owning the building can turn rent into equity, and we'll compare owner-user options against standard commercial terms for your situation.

Question 6

Is a 5-unit building really that different from a 4-unit one?

Accepted Answer

Financing-wise, yes. Four units can still use residential-style loans; at five, you're in commercial territory with different underwriting, terms, and lenders. If you're deciding between properties on either side of that line, we'll show you both sets of numbers so the loan doesn't make the decision for you.

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