CalculateRealEstateROI

Financing

How is a commercial loan different?

Underwritten on the property, 5–10 year terms with balloon, 20–25 year amortization, recourse or non-recourse.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Underwritten on the property, 5–10 year terms with balloon, 20–25 year amortization, recourse or non-recourse.

Expanded explanation

Triggers at 5+ units residential or any commercial asset. Higher closing costs (1–2% of loan), DSCR-based underwriting, often community bank or life-co lender.

Examples

  • 7-year fixed / 25-year amort balloon at 7.5% on $2M apartment.

More Financing questions