Commercial real estate interest rates are the lowest they’ve been in years. Whether you’re purchasing a new property for your business, remodeling and expanding your current digs, or constructing a whole new restaurant property, now is a prime time to take out a commercial real estate loan. Commercial Real Estate Interest rates are at historic lows (currently averaging between 4% and 6%), and lenders are very motivated to work with borrowers.
Types Of Commercial Loans
Real estate loans aren’t one-size-fits-all. The various types have very different terms, rates, and uses. A wide variety of lenders provide business loans for commercial real estate financing. While SBA loans and bank loans are generally reserved for the most qualified borrowers, hard money loans and bridge loans are more widely available.
Below are just a couple examples of some different Commercial Real Estate Interest rates based on the type of loan.
SBA 504 Commercial Real Estate Loan Rates
SBA 504 loans are the most affordable commercial real estate loans, with rates as low as 3.5%. Commercial real estate loan rates for this product are favorable because the U.S. Small Business Administration (SBA), working through local intermediaries called certified development companies (CDCs), extends a portion of the loan. With SBA 504 loans, borrowers can finance the purchase, improvement, or renovation of real estate.
SBA 7(a) Commercial Real Estate Loan Rates
The most popular of the SBA loan programs, SBA 7(a) loans go up to $5 million and can be used toward almost any business purpose, including the purchase or renovation of commercial property.
These have low interest rates too, but the terms aren’t quite as favorable as 504 loans. Commercial real estate loan interest rates on 7(a) loans are currently between 7% and 9.5%, and they can be fixed-rate or variable. SBA 7(a) lenders will usually require a downpayment of 20% and terms go up to 25 years.
Real Estate Funding Solutions is here to help you on your search for the best commercial real estate interest rates. Give us call at 1-855-913-8637 or send us an email at email@example.com to get started today!