What you need to know about Commercial Real Estate Loans

Commercial real estate loans are for purchasing real estate property such as office space, retail space, or apartment buildings to lease out to tenants. You can take out a real estate loan of up to $5.5 million in most cases with interest rates beginning around 5%. Repayment terms can vary, but can usually extend up to 25 years.

It is important to know that loan-to-value (LTV) ratios of property loans are generally 65%-75%, which means the down payment will be at least 25% of the purchase price. Read on for a breakdown of the most used CRE loans and what to keep in mind when seeking commercial real estate lending.