Commercial Mortgage Loans
Flexible Commercial Loan Options for Your Business
Finding the right financing solution is crucial for any commercial real estate investment. Whether you need funding for a new property, refinancing, or expanding your business, our commercial mortgage loans offer flexible terms and competitive rates. We help businesses secure commercial loans in Texas with a seamless application process and personalized support.
Get in touch today to explore your financing options.
Why Choose Our Commercial Loan Services?
Wide Range of Financing Solutions
We offer various commercial mortgage loans that cater to different business needs, from purchasing office buildings to developing large-scale properties.
Access to Multiple Lenders
We connect you with top lenders, ensuring you get the most competitive rates and terms.
Fast and Efficient Loan Processing
We simplify the loan application process, helping you secure funding quickly so you can focus on your business.
Custom Loan Terms to Fit Your Needs
With flexible repayment plans and competitive interest rates, our commercial mortgage loans are designed to support your financial goals.
Understanding Commercial Mortgage Loans
Commercial mortgage loans are a type of financing designed for businesses and investors looking to purchase, refinance, or renovate commercial properties. Unlike residential mortgages, which are intended for personal homeownership, commercial loans fund income-generating properties such as office buildings, retail centers, industrial warehouses, multifamily apartment complexes, and hotels. These loans allow businesses to secure the real estate they need for operations, expansion, or investment opportunities.
How Do Commercial Mortgage Loans Work?
A commercial mortgage loan works similarly to a residential mortgage, but there are key differences in the structure, terms, and approval process. Lenders assess various factors, including the property’s value, the borrower’s creditworthiness, business financials, and expected rental income. Loan terms typically range from 5 to 30 years, with interest rates that may be fixed or variable. Unlike residential loans, which often require a lower down payment, commercial loans usually require a 20-30% down payment and have stricter eligibility criteria.
Types of Properties Financed with Commercial Loans
Businesses and investors use commercial mortgage loans to finance various types of properties, including:
- Office Buildings – From small office spaces to corporate headquarters
- Retail Centers – Shopping malls, strip malls, and standalone retail stores
- Industrial Properties – Warehouses, factories, and manufacturing plants
- Multifamily Housing – Apartment complexes and mixed-use buildings
- Hotels & Hospitality – Motels, boutique hotels, and large hospitality chains
- Medical & Professional Spaces – Clinics, dental offices, and medical centers
Key Features of Commercial Mortgage Loans
- Loan Terms & Amortization
Commercial mortgage loans typically have shorter terms than residential loans, with repayment periods ranging from 5 to 30 years. Some loans include balloon payments, requiring the borrower to pay off the remaining balance at the end of the loan term. - Higher Down Payment Requirements
Most commercial loans require a down payment of 20% to 30% of the property’s purchase price. Lenders expect borrowers to have significant financial investment in the property. - Interest Rates & Fees
Interest rates on commercial loans vary based on market conditions, borrower creditworthiness, and the property’s financial performance. Rates typically range from 4% to 12%. Borrowers should also account for origination fees, appraisal costs, and closing fees. - Debt Service Coverage Ratio (DSCR)
Lenders assess the property’s ability to generate income through the debt service coverage ratio (DSCR). This ratio compares the property’s net operating income (NOI) to its annual loan payments. A DSCR of at least 1.25 is usually required to qualify for financing. - Collateral & Personal Guarantees
The property itself serves as collateral for the loan. In many cases, lenders require a personal guarantee, making the borrower personally responsible if the business cannot repay the loan.
Types of Commercial Loan Options
Traditional Commercial Mortgages
Long-term financing for property ownership
A traditional commercial mortgage loan provides businesses with funding to acquire or refinance commercial properties. These loans typically have fixed or variable interest rates and repayment terms ranging from 5 to 30 years.
- Competitive interest rates with long-term stability
- Suitable for office buildings, retail centers, and warehouses
- Loan amounts based on property value and borrower credit
- Ideal for businesses planning long-term ownership
- Available through banks, credit unions, and private lenders
SBA 7(a) and 504 Loans
Government-backed financing for small businesses
Small businesses looking for commercial loans in Texas can benefit from SBA-backed loans, which offer favorable terms and lower down payments. These loans are great for purchasing property, renovations, or business expansion.
- Lower down payments compared to traditional loans
- Longer repayment terms for easier financial planning
- Available for property purchases, renovations, and new construction
- Backed by the U.S. Small Business Administration
- Ideal for small businesses looking to secure funding with lower-risk
Bridge Loans
Short-term financing to cover immediate funding needs
Bridge loans provide short-term commercial mortgage loans to businesses needing fast capital while waiting for permanent financing. These loans help maintain cash flow and prevent project delays.
- Fast approval and funding process
- Ideal for businesses in transition or awaiting permanent loans
- Flexible repayment terms from six months to three years
- Can be used for acquisitions, renovations, or refinancing
- Helps businesses maintain financial stability during expansion
Hard Money Loans
Asset-based financing for quick funding
Hard money loans are ideal for businesses needing quick access to commercial loans in Texas without the strict credit requirements of traditional lenders. These loans are backed by property assets rather than borrower creditworthiness.
- Quick approval and funding, often within days
- Best for businesses with limited credit history
- Secured by property value rather than income
- Flexible repayment terms based on business needs
- Suitable for real estate investors and property developers
Construction Loans
Financing for ground-up developments and property improvements
Construction loans are beneficial for businesses looking to build new facilities or renovate existing properties. These commercial mortgage loans provide the necessary funds to cover construction costs.
- Funding for land purchase, materials, and labor
- Interest-only payments during construction phase
- Converts to a traditional mortgage upon project completion
- Flexible draw schedules based on construction milestones
- Supports commercial real estate development projects
Who Can Apply for a Commercial Mortgage Loan?
Commercial mortgage loans are available to a variety of business entities, including:
- Corporations and LLCs
- Real estate investors and developers
- Partnerships and joint ventures
- Small businesses and franchises
- Nonprofits and professional organizations
Why Are Commercial Mortgage Loans Important?
Securing the right commercial loan is essential for business growth, investment opportunities, and long-term financial success. Whether you’re acquiring new property, refinancing existing debt, or funding property improvements, commercial mortgage loans provide the capital needed to build and sustain business operations.
If you’re looking for commercial loans in Texas, our team is here to help. Contact us today to discuss your financing options and find the right loan for your business needs.
Stafford Home Mortgages & Financial Services is a leading mortgage broker in Texas, offering residential and commercial mortgage services across Midland, Odessa, Big Spring, Andrews, and the surrounding areas.