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What is the minimum down payment for a commercial real estate loan?

The minimum down payment required for most commercial real estate loans is typically 25 percent of the property purchase price (not including closing costs). However, down payments may be lower — as low as 15 percent if you use mezzanine financing in addition to a property loan or 10 percent if you use an SBA loan.

Do you need a down payment for a commercial property loan?

A borrower with poor financials and less than stellar credit may be required to provide a substantial down payment, sometimes as much as 40% or more, when attempting to get a commercial property loan or small business loan from a bank or hard money lender.

Do commercial loans require a large down payment?

But unlike residential mortgages, commercial loans require a large down payment, which is at least 20 percent of the commercial property’s value. Other lenders may require up to 50 percent down payment. They also impose more stringent credit background checks on your business and personal finances.

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