Best Commercial Real Estate Lenders for Real Estate Investors (2026)
Financing for 5+ unit multifamily, office, retail, industrial, and mixed-use investment properties. Includes agency debt (Fannie/Freddie Small Balance), CMBS, bank loans, and private credit.
Typical Rates
5.5%–9.0%
Max LTV
65%–80%
Typical Terms
5–30 years
Min Credit
660+
What Are Commercial Real Estate Loans?
Commercial real estate loans cover a wide spectrum of products for properties with 5+ units or non-residential uses. The gold standard for multifamily is Fannie Mae Small Balance Loans (SBL) and Freddie Mac Small Balance Loans — agency-backed debt with the best rates and longest terms. For investors scaling from 4-plexes to apartment buildings, understanding the commercial lending landscape is essential. The underwriting shifts from personal income (residential) to property-level analysis (commercial) — cap rates, NOI, occupancy history, and market comparables drive the decision.
Who Are Commercial Real Estate Loans Best For?
- Multifamily investors (5+ units)
- Commercial property investors
- Experienced investors graduating from residential
- Syndication operators
Pros & Cons
Pros
- +Agency debt (Fannie/Freddie) offers best rates for multifamily
- +Longer terms available for stabilized properties
- +Non-recourse options for qualified borrowers
- +Scale — larger loan amounts for bigger deals
Cons
- –More complex underwriting and documentation
- –Higher minimum loan amounts ($500K–$1M+)
- –Experience requirements for most products
- –Longer closing timelines (30–60+ days)
- –Commercial appraisals are expensive ($3,000–$10,000)
Best Commercial Lenders (1)
These lenders offer commercial real estate loans, ranked by our editor rating. Click any lender for a full review with detailed terms and expert analysis.
| Lender | Rates | Max LTV | Min Credit | Speed | Best For | Rating |
|---|---|---|---|---|---|---|
| Velocity Mortgage Capital | 6.5%–9% | 75% | 660 | 21–45 days | Small balance commercial, Multifamily investors | 4.0 |
Frequently Asked Questions About Commercial Real Estate Loans
When does a loan become "commercial" vs. "residential"?
The line is at 5 units. Properties with 1-4 residential units are underwritten as residential loans. Properties with 5+ units, or any non-residential use (retail, office, industrial), are commercial loans with different underwriting, documentation, and terms.
What is agency debt?
Agency debt refers to loans backed by Fannie Mae or Freddie Mac for multifamily properties (5+ units). These offer the best rates, longest terms (up to 30 years), and non-recourse options. Fannie Mae Small Balance Loans (SBL) start at $750K and are the most popular product for investors scaling into apartments.
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