Owner occupied commercial loans; rates and terms?

3 Replies

What are you seeing on owner occupied commercial property mortgages?  Rates, terms, points, etc?

5 years in the mid 3's with 25 year amort
7 years in the high 3's with 25 year amort
10 years in the low 4's with 25 year amort
LTV up to 80% for standard loan or 90% for 504.

Originally posted by @Eric Schleif :

5 years in the mid 3's with 25 year amort
7 years in the high 3's with 25 year amort
10 years in the low 4's with 25 year amort
LTV up to 80% for standard loan or 90% for 504.

Hey Eric, sorry to bump this but I'm exploring the idea of purchasing a mixed use building that would at minimum be 33% owner occupied (2 apartments and commercial on ground floor). I don't believe I qualify for only 10% down but you're telling me there are commercial loans with only 20% down? I thought it was 25% standard. Would love to hear more from you or anyone else for that matter.

No problem. I was quoting owner occupied commercial real estate for loan amounts of $2MM to $35MM. Also those rates I quoted have jumped since the election. It's more like Low 4's for 5 years, mid 4's for 7 years and high 4's for 10 years. 

On a deal the size you are looking at NJ you're looking at max leverage in the 65% to 75% range. 

Hope this helps.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.