Qualifying for a commercial mortgage is fundamentally different from getting a residential home loan. Commercial lenders evaluate the property, borrower, and business plan as an integrated package.
DSCR Requirements
Most lenders require 1.20x-1.25x minimum DSCR. SBA: 1.15x. Bridge: may accept below 1.0x with stabilization plan.
LTV Requirements
SBA 504: up to 90%. Banks: 70-80%. Life companies: 55-65%. Construction: 60-75% of completed value.
Credit Score Requirements
Banks: 660-680 minimum. SBA: 650+. Life companies: 700+. Hard money: no minimum.
Documentation Checklist
PFS, tax returns, bank statements, rent roll, operating statements, property photos, purchase contract, borrower resume, entity documents.
Trevor Damyan is a commercial mortgage broker at Commercial Lending Solutions with a background in structured finance at CBRE and Marcus and Millichap Capital Corporation. He specializes in bridge loans, construction financing, SBA programs, DSCR loans, and complex capital structures for investors and developers across all 50 states.
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