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What is the minimum down payment on a commercial mortgage?

The minimum down payment for a traditional commercial mortgage varies between 15% and 35% of the overall purchase price, depending on the lender. With SBA 7 (a) and CDC/SBA 504 loans, the range is more standardized, falling between 10% and 15% of the purchase price. What is a prepayment penalty on a commercial real estate loan?

Do commercial real estate loans require a down payment?

Most commercial real estate loans require a down payment, which may range between 10% and 30%, although some special lender programs go as low as 5%. A down payment for a commercial loan is determined by several factors, including the appraised value of the property.

What is a down payment on a commercial loan?

Down Payment: Amount paid by the borrower at the time of purchase. Most commercial loan minimum down payments require 20-25% down, but some programs and types differ. LTV Ratio: Compares the loan amount to the appraised value of the property.

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