CalculateRealEstateROI

Financing

How does a commercial loan differ from residential?

Commercial: shorter terms (5–10 yrs), DSCR-based, balloon payment, recourse varies.

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

Direct answer

Commercial: shorter terms (5–10 yrs), DSCR-based, balloon payment, recourse varies.

Expanded explanation

Commercial loans amortize over 25–30 but mature at 5–10. Refinance risk is a feature you must plan for.

Examples

  • 10/30 commercial loan: 10-yr term, 30-yr amortization, balloon.

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