Where do investors find reasonable 30 year fixed rate Commercial Loans?

Question

I have a solid relationship with the seller of a 5-unit (4 apartment, 1 commercial) building in Mercer County, PA. I currently have a reliable team with my managed properties in the area; however, I don't have a commercial lender. The seller wants $150k, and the numbers check out. Where do people find these 30+ year commercial loans that are mentioned in BiggerPocket Stories and Podcast. I keep coming across 5-10-15 year notes with balloons.

Chris Seveney · Answer

Most commercial loans are 10 or 20 years

if these are on separate parcel I would 100% treat it as 2 transactions as you could get a DSCR loan for the 4 unit and for the commercial a different loan.
of it's one parcel and mixed use probably best you can do is 20 years

Jared Rine · Answer

@Tim Nethers ...they are out there, but you have to know who to contact.  Full disclosure - I broker these types of loans.  But it's why people like me stay in business.  Knowing who to contact and what lenders can execute in the marketplace is so crucial and as an investor, that can eat up a lot of time and resources that would otherwise be better used elsewhere when trying to do it on your own.  The loan amount itself is going to be a main issue for most lenders at ~$150,000 value, let alone finding a niche product.  But it does exist.  I don't know if it would work for your situation, but feel free to PM.

Givo Aghasi · Answer

@Tim Nethers 30-year fixed options for mixed-use properties are available.

David Hedges · Answer

check out Truly investor capital. I've used them for a few of my properties. They sounded like they probably could lend for something like that.

https://www.trulyinvestorcapital.com/rental/spr

Ko Kashiwagi · Answer

Hi Tim,

30 year fixed for 5+ units are available but just way more rare than 2-4 unit loans. Local banks tend to do 5-15 balloon and there are institutional programs for 30 year fixed but typically they require loan amounts of 200-300k+.

Marc Walowitz · Answer

Tim, we have done 30 yr DSCR loans for similar properties. All my contact information is in my profile. Honestly, you find more than 30 year loans, if you do, you are probably being baited for another type of loan. Happy Friday, Marc

Alecia Loveless · Answer

The lender I use will lock in your rate for 20 years with 20% down and for 25 years with 25% down. For my first loan about 3 years ago there was no prepayment penalty. Then with the second loan there was a 3 year prepayment penalty and last September there was a 5 year prepayment penalty.

I figure the prepayment penalty only hurts me if interest rates drop significantly and I want to refinance.

Caitlin Davis · Answer

I can get this done. DM me!

Deven Ziertman · Answer

Finding true 30-year fixed loans for small commercial properties can be tough, but there are some options. Some DSCR lenders offer 30-year fixed terms for 5-unit residential properties, especially if the commercial part is minimal or split. Separating parcels for residential and commercial units might open up better financing options. Portfolio and credit union lenders sometimes offer longer fixed terms on mixed-use deals, though minimum loan sizes apply. For smaller loan sizes (around $150K), local/regional lenders or brokers with niche products may still be able to help. The key is aligning the deal structure with the right lender’s criteria.

Where do investors find reasonable 30 year fixed rate Commercial Loans?

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