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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 the average down payment for a commercial property loan?

The average down payment for a commercial property loan typically ranges between 10% and 30% of the property’s equity, often around 25%. The exact amount depends on the loan type and the property in question. For traditional term loans, expect higher down payment requirements, often in the 25% to 30% range.

Do you need a down payment for a business loan?

While not every lender requires a down payment, they are far from uncommon when you need a business loan. Some SBA loans, banks and even online lenders may require a down payment of 10 to 30 percent. Research lenders and ensure your business can meet a down payment in addition to monthly payments.

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