Secure funding for property deals

Commercial Mortgage Loans

Property financing for business growth

Financing for Commercial Property Acquisition

Commercial mortgage loans are long-term financing solutions used to purchase, refinance, or renovate income-generating properties such as office buildings, retail centers, warehouses, or multifamily units. These loans are typically secured by the real estate itself and are available to investors, developers, and business owners looking to acquire or improve commercial property.

Whether you’re buying your first investment property or refinancing an existing asset for better terms, commercial mortgages offer flexibility in loan structure, amortization periods, and interest rates. They can support a range of property types and deal sizes, helping you preserve working capital while expanding your real estate portfolio.

Property financing for business growth

What are 30-Year Commercial Mortgages

A 30-year commercial mortgage is a long-term loan for purchasing, refinancing, or refurbishing properties used for business purposes. It’s similar to a residential mortgage but is secured by the commercial property itself.

Key Characteristics

Commercial Mortgages - Peach Tree Capital

Offers borrowers the advantage of lower monthly payments compared to shorter-term loans due to the extended repayment period.

Commercial Mortgages - Peach Tree Capital

Borrowers can choose between fixed rates that remain constant or variable rates that fluctuate with market conditions.

Commercial Mortgages - Peach Tree Capital

Provides stability and ease of financial planning with a fixed repayment schedule.

Commercial Mortgages - Peach Tree Capital

With a fixed rate, the real cost of the mortgage can decrease over time as inflation rises

Commercial Mortgages - Peach Tree Capital

While 30-year terms are standard in residential real estate, commercial loans usually range from 5 to 25 years, though some lenders do offer 30-year options.

Important Considerations

Commercial Mortgages - Peach Tree Capital

Commercial lenders focus on the property’s income potential and the borrower’s financial health, not just the debt-to-income ratio.

Commercial Mortgages - Peach Tree Capital

Commercial loans typically require a larger down payment compared to residential mortgages.

Commercial Mortgages - Peach Tree Capital

Commercial loans often have longer amortization periods than their terms, leading to smaller monthly payments and a balloon payment at the end.

Commercial Mortgages - Peach Tree Capital

With a fixed rate, the real cost of the mortgage can decrease over time as inflation rises

Benefits of 30-Year Fixed Commercial Mortgages

Commercial Mortgages - Peach Tree Capital

Fixed monthly payments provide a predictable financial roadmap for the business.

Commercial Mortgages - Peach Tree Capital

Allows businesses to allocate capital to other areas or investments due to lower monthly payments.

Commercial Mortgages - Peach Tree Capital

A fixed rate helps secure the cost of the loan against inflation.

Commercial Mortgages - Peach Tree Capital

A 30-year commercial mortgage offers long-term stability but is less common, so it’s important to compare lender terms carefully before deciding.

Loan features at a glance

Compare Options

Full
Documentation
Lite Doc
Investor
No Doc
Streamline
Commercial
Bank Statement
Loan Type Investor Owner-Occupied Investor Only Investor Owner-Occupied Owner-Occupied Only
Loan Size $100K – $2M $100K – $2M $100K – $2M $100K – $2M
Loan Terms 30-Year Fixed
5-Year ARM
30-Year Fixed
5-Year ARM
30-Year Fixed
5-Year ARM
30-Year Fixed
5-Year ARM
Amortization 15, 25, 30 15, 25, 30 15, 25, 30 15, 25, 30
Loan Purpose Purchase, Cash-Out, R/T Refinance Purchase, Cash-Out, R/T Refinance Purchase, Cash-Out, R/T Refinance Purchase, Cash-Out, R/T Refinance
Max LTV Purchase: 80%
Refinance: 75%
Purchase: 80%
Refinance: 75%
Purchase: 75%
Refinance: 70%
Purchase: 80%
Refinance: 75%
Min FICO 650 650 700 650
Min DSCR Inv: 1.15x O-O: 1.2x Global 1.15x 1.00x 1.20x Global
Prepayment Fee 5% for 10, 7, 5, or 3 years | Declining 5%, 4%, 3%, 2%, 1%
Income Docs 2 years personal and
biz tax returns
No tax returns None required 12 consecutive months
of biz bank statements
Borrower Type Individual or Business Entity Individual or Business Entity Individual or Business Entity Individual or Business Entity

Loan features at a glance

Compare Options

 

Full
Documentation
Lite Doc
Investor
No Doc
Streamline
Commercial
Bank Statement
Loan Type Investor Owner-Occupied Investor Only Investor Owner-Occupied Owner-Occupied Only
Loan Size $100K – $2M $100K – $2M $100K – $2M $100K – $2M
Loan Terms 30-Year Fixed
5-Year ARM
30-Year Fixed
5-Year ARM
30-Year Fixed
5-Year ARM
30-Year Fixed
5-Year ARM
Amortization 15, 25, 30 15, 25, 30 15, 25, 30 15, 25, 30
Loan Purpose Purchase, Cash-Out, R/T Refinance Purchase, Cash-Out, R/T Refinance Purchase, Cash-Out, R/T Refinance Purchase, Cash-Out, R/T Refinance
Max LTV Purchase: 80%
Refinance: 75%
Purchase: 80%
Refinance: 75%
Purchase: 75%
Refinance: 70%
Purchase: 80%
Refinance: 75%
Min FICO 650 650 700 650
Min DSCR Inv: 1.15x O-O: 1.2x Global 1.15x 1.00x 1.20x Global
Prepayment Fee 5% for 10, 7, 5, or 3 years | Declining 5%, 4%, 3%, 2%, 1%
Income Docs 2 years personal and
biz tax returns
No tax returns None required 12 consecutive months
of biz bank statements
Borrower Type Individual or Business Entity Individual or Business Entity Individual or Business Entity Individual or Business Entity