Home / Commercial Loans
Business & investment real estateCommercial loans for multifamily, mixed-use, and business property
Commercial mortgage financing covers income-producing and business-use properties—typically multifamily 5+ units, mixed-use, retail, office, industrial, and similar assets. Underwriting focuses on property cash flow, sponsor strength, and entity structure. Some products may be sourced through partner lenders; a loan officer will disclose the creditor and licensing path before you apply.
NMLS #1660690 · Reviewed by UMortgage+
Key facts
Educational ranges only. Confirm availability and overlays with a loan officer against current NEXA Lending guidelines (and partners where noted).
| Property types | Multifamily 5+, mixed-use, retail, office, industrial, self-storage, etc. |
|---|---|
| Vs. residential DSCR | 1–4 unit rentals often stay on Non-QM/DSCR residential menus. |
| Down payment / LTV | Often larger equity requirements than consumer mortgages (confirm term sheets). |
| DSCR | Property cash flow vs. debt service is central. |
| Structures | Conventional commercial, SBA 504/7(a) (owner-occupied eligibility), bridge / fix-and-flip via partners when available. |
| Docs | Rent rolls, P&Ls, tax returns, entity documents, appraisal/environmental as required. |
Who it's best for
- Investors acquiring or refinancing 5+ unit multifamily
- Owner-occupants exploring SBA real-estate financing
- Sponsors needing bridge capital with a defined exit
Who should look elsewhere
- Primary-home buyers (use purchase programs)
- 1–4 unit rentals that fit residential DSCR
- Anyone needing a simple consumer mortgage timeline
Pros and cons
Pros
- Right-sized capital for business properties
- Possible SBA leverage for eligible owner-occupied deals
- Partner network for specialty/bridge needs
Cons
- Longer timelines and heavier documentation
- Prepayment and recourse terms can be stringent
- Pricing higher than agency residential
- Availability depends on partner appetite
How it works in 4 steps
Goals & fit
Map property, documentation path, and timeline to the right product family.
Compare terms
Review structure, fees, draws or payouts, and qualifications before you commit.
Underwrite / counsel
Clear conditions—or complete required counseling—and builder reviews when needed.
Close & fund
Sign, fund, and manage any construction draws through completion.
Illustrative commercial DSCR snapshot
Assume a small multifamily NOI (net operating income) of $180,000/year and proposed annual debt service of $140,000 ⇒ DSCR ≈ 1.29×.
If a lender wants 1.25× minimum and 75% LTV on a $2,000,000 value, maximum loan illustrative ≈ $1,500,000—subject to sponsor credit, reserves, and third-party reports. This is teaching math, not a term sheet.
Not a rate quote, APR, loan offer, or commitment to lend. Ask a loan officer for scenario-specific disclosures.
Frequently asked questions
What property types count as commercial?
Common examples: multifamily 5+ units, mixed-use, retail, office, industrial, self-storage, and some hospitality. 1–4 unit residential investment is often handled on residential DSCR/Non-QM menus instead.
Commercial vs. residential DSCR—what's the difference?
Residential DSCR (1–4 units) uses residential mortgage channels. Commercial loans use commercial underwriting: business property cash flow, rent rolls, bigger reserves, different legal docs, and often recourse or guaranties.
What down payment, DSCR, and LTV are typical?
Many commercial deals expect larger down payments (often 25%+ range depending on property and sponsor) and DSCR above 1.0x—exact hurdles are lender-specific. Ask for a term-sheet style scenario, not a consumer Loan Estimate format.
SBA 504/7(a) vs. conventional commercial?
SBA programs can reduce down payment for owner-occupied business real estate when eligibility rules are met. Conventional commercial (bank/CMB S/ correspondent) may fit investment properties or sponsors who want speed over SBA process.
Are bridge and fix-and-flip loans available?
Short-term bridge and fix-and-flip financing may be offered through partners. Rates/points are higher; exits must be clear. Confirm what a loan officer can source today.
What about prepayment and recourse?
Commercial notes often include prepayment penalties or yield maintenance and may require personal guaranty (recourse). Read the term sheet carefully.
Timeline and documents?
Expect rent rolls, operating statements, tax returns, entity docs (LLC/operating agreement), environmental/appraisal as required. Timelines are longer than consumer mortgages.
Who funds these—NEXA or partners?
Commercial and some specialty products may be brokered through partner lenders. Licensing and disclosures will identify the creditor. Your LO will clarify before you apply.
Educational content only. Confirm with UMortgage+ powered by NEXA Lending, LLC.
Discuss your commercial scenario
a loan officer will clarify residential DSCR vs. commercial and any partner lenders. Call (480) 233-7897.