how much down for a commercial real estate loan

Best answer

20%

People also ask

How much is the down payment on a commercial real estate loan? For a traditional commercial mortgage, the minimum down payment varies between 15% and 35% of the overall purchase price, depending on the lender. With SBA 7 (a) and CDC/SBA 504 loans, the range is more standardized, falling between 10% and 15% of the purchase price.

Average Commercial Real Estate Loan Rates for 2018. For 2018, the average interest rate on a commercial real estate loan is around 4% to 5%. The actual interest rate you secure on a loan depends on the type of loan you choose, your qualifications as a borrower, and the type of building or project you鈥檙e financing.

Let鈥檚 use the calculator on top of this page to estimate your monthly payment, interest-only payment, and total balloon payment. According to the results, your monthly commercial mortgage payment will be $20,155.80 for 10 years. If you choose to make interest-only payments, it will only be $18,787.00 per month.

Twenty-five Percent Down with a Conventional Commercial Loan. If you do not qualify for an SBA loan and are looking to purchase commercial property with a purchase price between $250,000 to $5 million, you may qualify for a conventional business loan through bank financing or private lenders.