Commercial Real Estate Loan Requirements: Complete Guide for 2026
What are the requirements for a commercial real estate loan? See credit scores, down payments, DSCR minimums, and documents needed by loan type.
Jan 15, 2025
1 min read
$5.3M Industrial Warehouse
Birmingham, AL
Funded Amount
$5.3M
Cash-out proceeds included
What are the requirements for a commercial real estate loan?
Commercial real estate loans require 660+ credit scores, 20-35% down payment, DSCR of 1.20x+, 2-3 years of tax returns, and property appraisal. Loan sizing uses the lower of LTV (65-80%), DSCR, and debt yield metrics.
Key Takeaways
- Commercial real estate loans require minimum credit scores of 660-680 for most lenders, with 700+ for best terms
- Standard documentation includes 2-3 years of tax returns, personal financial statement, property financials, and business plan
- LTV limits range from 65-80% depending on property type, with multifamily generally getting the highest leverage
- Loan sizing is driven by the lower of LTV, DSCR, and debt yield calculations
- Environmental Phase I and property appraisal are required for virtually all commercial loan applications
660-680
Minimum credit score required by most commercial real estate lenders
Source: Federal Reserve Bank Survey
45-60 days
Average commercial real estate loan closing timeline from application
Source: Mortgage Bankers Association
TOPICS
Clear House Lending Team
Commercial Lending Experts
Our team of commercial lending experts brings decades of experience helping investors and developers secure the right financing for their projects.
Ready to Explore Your Options?
Connect with our team for a free consultation and personalized financing quote from our network of 6,000+ commercial lenders.
No credit check. Takes 2 minutes.
Related Articles
View allLoan Amortization Schedule: How Commercial Payments Work
Understand how a loan amortization schedule works for commercial mortgages. Compare fully amortizing vs balloon payments, terms, and total interest paid.
Investment Property Mortgage: How to Qualify in 2026
Learn how to qualify for a mortgage loan for investment property in 2026. Compare conventional, DSCR, portfolio, and hard money options and rates.
Gas Station Financing: Complete Loan Guide for 2026
Learn how to finance a gas station purchase with SBA 7(a), SBA 504, and conventional loans. Covers environmental due diligence, valuation methods, and more.