Four numbers in. Your payment and deal check out in seconds — then go as deep as a lender would, only when you’re ready.
Start with the basics — your answer builds beside you as you type.
Commercial loans are sized on debt coverage, not the sticker price. Give me the income and your lender’s floors — your borrowing power updates as you type.
Owner-occupants can pair a bank first mortgage with a fixed-rate CDC debenture and put as little as 10% down. Illustrative — enter live quotes from your lender and CDC.
Uses the loan, rate, amortization, and balloon from your Quick Estimate above. Add an origination fee, extra monthly payments, or an appreciation assumption to model the real payoff, equity, and refinance LTV.
Commercial loans price as a spread over the benchmark indices shown live in the hero pill (10- & 5-Yr Treasury, SOFR, Prime), refreshed daily from U.S. Treasury & Federal Reserve data. The ranges below are typical spreads — confirm exact pricing with Jason. New to commercial lending? Start with how commercial real estate financing works.
| Lender type | Typical rate | Max LTV | Min DSCR | Best for |
|---|---|---|---|---|
| Bank / Credit Union | 6.75–7.75% | Up to 75% | 1.20–1.30x | Owner-occupied & investment; relationship-driven |
| Life Insurance Co. | 5.75–6.75% | 65–70% | 1.30–1.45x | Large, stabilized, low-leverage assets |
| CMBS / Conduit | 6.25–7.25% | 70–75% | 1.20–1.25x | Non-recourse, 10-yr term, larger loans |
| SBA 504 / 7(a) | 6.00–6.75% | Up to 90% | 1.15x | Owner-occupants; low down payment |
| Bridge / Private | 9.00–12.00%+ | 70–80% | Often none | Transitional / value-add; short term |
Illustrative only — confirm current pricing before underwriting a deal.
A commercial mortgage is underwritten on the property’s income and the borrower’s strength — not just a credit score. Six ways it differs from a home loan:
Commercial loans rarely run their full amortization. A 25-year schedule with a 5-year balloon means ~85% of the loan is due in one lump sum after five years.
Expect 20–35% down. SBA 504 owner-occupant loans can go as low as 10%; investment property usually needs 25–30%.
Most lenders want a debt-service coverage ratio of 1.20–1.30x minimum — NOI must exceed the annual debt payment by that margin.
Lenders don’t accept the seller’s NOI at face value. Vacancy floors, a management fee, and replacement reserves typically cut it 5–15%.
Lenders check net worth near the loan amount, 9–12 months of debt-service liquidity, real-estate experience, and a 680+ credit score.
Many commercial loans require a personal guarantee. Non-recourse loans need larger deals, stronger sponsors, and lower leverage.
Lenders apply standard adjustments: a vacancy floor (5% minimum even if 100% leased, 10% for office), a management fee (3–5% even if you self-manage), and replacement reserves ($0.20–$0.30/SF annually). The result is a lender NOI usually 5–15% below the seller’s — and that is what your loan is sized against.
No. Life insurance companies want 1.30–1.45x, bank portfolio loans 1.20–1.30x, CMBS 1.20–1.25x, and SBA 504 / 7(a) as low as 1.15x for owner-occupants. Bridge lenders may require no DSCR at all. The lender-match feature shows which loan types your specific deal qualifies for.
A balloon is the lump sum owed at the end of a commercial loan term. Lenders amortize over 25 years to keep the payment manageable but only fix the rate for 5–10 years; at term end you refinance, sell, or pay the balance in cash.
Standard DSCR uses today’s NOI and payment. Stress-tested DSCR shows what happens if rates rise 1%, vacancy climbs 5%, or rents drop 5%. If any scenario pushes DSCR below 1.0x, the deal carries real risk even if today’s number looks fine.
Yes — Full Underwriting mode is built for it. Use it for properties you are evaluating, on-market listings, or deals you are marketing as a broker. The summary includes every input, the lender adjustments, DSCR analysis, and lender match. It is still an underwriting tool, so confirm final terms with a real lender quote.
The schedule of principal + interest payments that pays a loan to zero over a set period — commonly 25 years for commercial.
The lump sum due at term end. Lenders amortize over 25 years but fix the rate for only 5–10, so the remaining balance comes due.
Net operating income ÷ annual debt service. Lenders typically want 1.20–1.35x.
Loan ÷ property value. Commercial lenders usually cap LTV at 65–80%.
Net operating income ÷ price — a quick measure of unleveraged yield.
Gross income minus vacancy and operating expenses, before debt service.
Annual pre-tax cash flow ÷ cash invested.
NOI ÷ loan amount; many banks want 9–10%+.
Owner-occupant structure: ~50% bank first, ~40% SBA debenture, ~10% down.
A period where you pay only interest, so the balance doesn’t amortize yet.
A calculator gives you the math; a broker gives you the deal. Jason Bitton connects Chicagoland and Lake County buyers, owner-occupants, and investors with the right lenders and the right properties.
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