Side-by-side comparison of the five most common CRE loan types — SBA 7(a), SBA 504, CMBS, Bridge, and Agency/Fannie Mae — with DSCR minimums, LTV limits, current rate ranges, and best-use guidance.
Rates as of April 2026. DSCR minimums reflect standard lender requirements; individual lenders may vary.
| Loan Type | Min DSCR | Max LTV | Rate Range | Term |
|---|---|---|---|---|
SBA 7(a) Loan Owner-Occupied | 1.25x | 90% | Prime + 2.75% – Prime + 3.75% | 10–25 years |
SBA 504 Loan Owner-Occupied | 1.25x | 90% | Fixed ~6.0% – 6.5% (CDC portion) | 20–25 years |
CMBS / Conduit Loan Investment | 1.25x | 75% | 10-yr Treasury + 175–250 bps | 5, 7, or 10 years (25–30 yr amortization) |
Bridge / Hard Money Loan Transitional | None (asset-based) | 75–80% LTC | 8.5% – 13%+ | 12–36 months |
Agency / Fannie Mae / Freddie Mac Multifamily Only | 1.25x | 80% | 10-yr Treasury + 140–200 bps | 5, 7, 10, 12, or 15 years |
Small business owners purchasing their own commercial space with limited down payment.
Established businesses acquiring or constructing large owner-occupied facilities.
Investors with stabilized, income-producing properties seeking non-recourse fixed-rate financing.
Value-add acquisitions, construction projects, or properties in lease-up that need short-term capital.
Stabilized multifamily investors seeking the lowest long-term fixed rate with non-recourse structure.
Use our free DSCR Loan Qualifier to check whether your property qualifies under each loan program's minimum requirements — before you spend time on a full application.
Selecting the right commercial real estate loan program depends on three primary factors: owner-occupancy vs. investment, property stabilization status, and hold period. Owner-occupied properties with a creditworthy business borrower are best served by SBA programs, which offer the highest LTV (up to 90%) and the longest amortization periods. Investment properties that are already stabilized — meaning they are at or near market occupancy and generating consistent NOI — are candidates for CMBS or Agency financing, which offer competitive fixed rates and non-recourse structures.
Properties in transition — recently acquired value-add assets, properties undergoing renovation, or new developments in lease-up — typically require bridge financing as a first step. The bridge loan provides short-term capital while the borrower executes the business plan, after which the property is refinanced into permanent financing once it meets the DSCR and occupancy thresholds required by CMBS, Agency, or bank portfolio lenders.
The Debt Service Coverage Ratio (DSCR) is the single most important underwriting metric for commercial real estate loans. It is calculated as Net Operating Income (NOI) divided by annual debt service (principal + interest). A DSCR of 1.25x means the property generates $1.25 in NOI for every $1.00 of debt service — providing a 25% cushion against income shortfalls. Most permanent lenders (SBA, CMBS, Agency) require a minimum 1.25x DSCR, while some bank portfolio lenders may accept 1.20x for strong sponsors in high-demand markets.
Bridge lenders do not typically require a minimum DSCR at origination because the property may not yet be generating stabilized income. Instead, bridge lenders underwrite primarily on the as-is and as-stabilized value of the asset, the borrower's experience and track record, and the clarity of the exit strategy. Use the free DSCR calculator to check your property's current and projected DSCR against each program's requirements before engaging a lender.