Today's Commercial Loan Rates & Indexes as of 04/03/2025

Conventional Loan Rates

Conventional mortgages are loans offered by FDIC-insured institutions such as banks or credit unions. They typically require a personal guarantee and an underwriting of the global cash flow of the guarantors, including personal and business tax returns. This loan product can be used for investment or owner-occupied properties.

Loan Amount $1,000,000+
* Not available for all properties in all markets
** Priced on a per-transaction basis

Private Banking Mortgage Rates

Private Banking is provided to offer Borrowers with high net worth and liquidity preferred terms and discounted interest rates. In order to provide this service the lender might request a depository or a private wealth management relationship with the loan Sponsors.

Loan Amount $1,000,000+
* Not available for all properties in all markets
** Priced on a per-transaction basis
*** Borrowers must qualify for the Private Banking relationship program. Principals must have >$3Million liquid assets and >$10Million net worth

CMBS Loan Rates

A CMBS/Conduit mortgage is a non-recourse loan provided by a financial institution that securitizes the loans after closing by pooling the loans together and offering bonds collateralized by the underlying real estate. Used only for investment properties.

SBA 504 Loan Rates

SBA 504 is a loan product guaranteed by the Small Business Administration for the financing of owner-occupied real estate and/or machinery and equipment. LTVs go up to 90% and may be used for construction or existing properties.

Loan Amount $750,000+
* Not available for all property types
** SBA debenture rate only

SBA 7a Mortgage Rates

SBA 7a is another loan product guaranteed by the Small Business Administration, but may be used for the financing of owner-occupied, real estate, machinery, equipment, inventory, FF&E, or working capital. LTVs go up to 80% and may be used for construction or existing properties.

Loan Amount $750,000+
* Not available for all property types

USDA Mortgage Rates

A USDA loan may be used for the acquisition or construction of commercial real estate, purchase of machinery or equipment, or establishment of working capital. It is only available in eligible rural areas with populations of 50,000 or less.

Loan Amount $1,000,000-$25,000,000
* Not available for all property types
** Priced on per-transaction basis

Commercial Insurance Rates

(Life Company/LifeCo): Typically the most conservative and competitive of all the products, most insurance lenders prefer newer, high-quality properties at low leverage in major markets and very experienced investors. This product can be used for stabilized properties (or construction in some circumstances).

* Not available for all property types

Bridge Rates

Bridge loans are used for the light renovation and/or re-stabilization of an investment property. These are typically higher interest rate loans and are used short-term (6-36 months) until the property is fully renovated and re-stabilized. After the property is fully stabilized, the borrower can seek one of the other lower-interest rate loan products mentioned in this section.

Loan Amount: $1,000,000+
* Not available for all property types or areas; may calculate using LTC instead of LTV
** Interest-Only

Construction Commercial Loan Rates

Construction loans are used for the substantial rehabilitation, redevelopment, or ground-up construction of a property. Interest rates can range substantially depending on the lender, property type, market, and loan product.

Loan Amount: $3,000,000+
* Not available for all property types or areas; may calculate using LTC instead of LTV
** Interest-Only

Mezzanine (“mezz debt”)

This is a hybrid security of debt and equity that is put onto a property in a second-lien position (behind another “senior secured” lender) when the borrower cannot get a LTV that is high enough to finance a specific piece of commercial real estate. It can be used for both either the acquisition or refinance of an investment property.

Loan Amount: $1,000,000+
* Not available for all property types or areas
** Usually used in conjunction with CMBS loans, following the same underwriting standards

Key Market Index Rates

Hard Money

Hard Money Loans are offered by private investment institutions for the financing of properties that are not “bankable” due to borrower credit issues, property issues, or other reasons. Because of the extremely high interest rates (typically 12%+), we don’t recommend using this product unless the Borrower has significant experience with this type of loan and can refinance out or sell the property within a short, set time frame.

Fannie Mae

Fannie Mae is a non-recourse multifamily loan product offered for experienced investors with properties in primary or secondary markets; tertiary markets only considered on an exception basis and requires a waiver. Click here for apartment loan rates.

Freddie Mac

Freddie Mac is another non-recourse multifamily loan product offered to experienced investors with properties in major markets. The main difference between this product and Fannie is the available structures for its small balance loan program (i.e. hybrid, step-down prepayment penalties). Click here for apartment loan rates.

FHA (HUD)

FHA is a non-recourse mortgage product that is federally guaranteed by the Federal Housing Authority’s Department of Housing and Urban Development (HUD). It can be used for multifamily properties or various medical facilities such as assisted living or hospitals.. Click here for apartment loan rates.

Other Rates

• Apartment Loan Rates
• Current Index Rates
• Current CLD Specials

What Types of Properties Qualify for a Commercial Loan?

In order to qualify for a commercial loan, a property must be zoned appropriately for either business/commercial or multifamily use. This would include the following types of buildings:

• Office
• Retail
• Apartments (5+ units)
• Industrial/Warehouse
• Mixed Use (a combination of any of the above properties)
• Self Storage
• Hospitality (Hotel/Motel)
• Specialty Use (including car washes, churches, auto repair, hospitals, or any other property that can only be used for a specific type of business or function).

What is the Difference Between Residential and Commercial Interest Rates?

Residential properties (i.e. single-family dwellings with 4 units or less) usually have much lower interest rates available than commercial properties. Additionally, the term and amortization typically match on a residential loan (i.e. 30/30), whereas the term of a commercial loan is usually shorter than the amortization (i.e. 7/25), causing the borrower to have to refinance or payoff the loan (or sell the property) at or before the end of the loan term.

How Are Interest Rates Calculated?

Commercial interest rates may be calculated a variety of ways depending on the lender’s internal cost of funds. However, the most common way a lender calculates an interest rate is by taking a an index (i.e. LIBOR, treasury, swaps, FHLB, etc.) and adding a “spread” to that index, which is what the lender is making off of the loan. For instance, if the lender is pricing at LIBOR (currently at 0.000% + 2.00%), your interest rate would be 2>%.