Clear House Lending connects real estate investors and developers with the right lender from our network of 6,000+ private capital sources. Bridge, DSCR, SBA, hard money, and construction loans -- most borrowers get term sheets within 48 hours.
Two different approaches to commercial real estate financing. Learn when each makes sense for your investment.
Key Takeaways
The choice between bank loans and private lenders depends on your property condition, timeline, and borrower profile. Banks provide the lowest rates for stabilized properties, while private lenders offer speed and flexibility for transitional or value-add deals.
$929B
total commercial and multifamily mortgage originations in 2023
Source: Mortgage Bankers Association
6,000+
commercial lenders in Clear House Lending's network
Source: Clear House Lending
3-7 days
fastest closing times for hard money loans
60-70%
typical LTV for hard money loans (asset-based lending)
| Feature | Bank Loans | Private Lenders |
|---|---|---|
| Interest Rates | 6-8% (lowest) | 9-14%+ |
| Closing Speed | 45-90 days | 7-21 days |
| Loan Term | 5-25 years | 6-36 months |
| Credit Requirements | 680+ (strict) | 600+ (flexible) |
| Income Verification | Full documentation | Often minimal |
| Property Condition | Stabilized required | Any condition |
| Occupancy Required | 85-90%+ | None/low OK |
| LTV | 65-80% | 60-75% (on ARV) |
| Best For | Permanent financing | Transitional/value-add |
Banks and traditional lenders offer the best rates for stabilized, income-producing properties. They're the right choice when:
Private lenders fill gaps where banks can't or won't lend. They're ideal for:
Many investors use both bank and private financing strategically:
This approach lets you access deals banks won't initially finance, then capture lower long-term rates once the property is performing.
Clear House Lending's network includes traditional banks, credit unions, and private lenders. We'll match your deal to the right capital source.
Get a Free QuoteFinancing solutions for every stage of the commercial property lifecycle
Financing for the purchase of new commercial assets
Rate, term, and cash-out solutions for existing commercial debt
Long-term, fixed-rate financing for stabilized commercial properties
Short-term funding for quick acquisitions or property stabilization
Securitized, large balance non-recourse commercial real estate mortgages
Government-backed financing for owner-occupied commercial real estate
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