Shopping for a commercial property loan in Texas? Rates vary dramatically depending on the loan type, your property, and your documentation. This guide breaks down the most common commercial loan programs side by side so you can find the right fit before you call a lender.
Commercial Property Loan Rates at a Glance
| Loan Type | Typical Rate | Term | LTV | Best For |
|---|---|---|---|---|
| Conventional Bank | 6.5% – 8.5% | 5–25 years | Up to 80% | Stabilized properties, strong financials |
| SBA 7(a) | Prime + 2.75% – 4.75% | Up to 25 years | Up to 90% | Owner-occupied, low down payment |
| SBA 504 | 5.5% – 7.0% (blended) | 10–25 years | Up to 90% | Equipment + real estate, fixed rate |
| Stated Income / No-Doc | 7.5% – 10.5% | 3–30 years | Up to 75% | Self-employed, no tax returns required |
| Hard Money | 9.0% – 13.0% | 6–24 months | Up to 70% | Fast close, distressed property, bridge |
| Bridge Loan | 8.0% – 12.0% | 6–36 months | Up to 75% | Transition period, value-add properties |
| CMBS / Conduit | 6.0% – 8.0% | 5–10 years | Up to 75% | Large loans, non-recourse, stable properties |
| DSCR Loan | 7.0% – 9.5% | 5–30 years | Up to 80% | Investors, qualify on rental income only |
Rates as of 2026. All rates are subject to change based on market conditions, borrower profile, and property type. Contact us for a current quote.
Breaking Down Each Loan Type
Conventional Bank Loans — Lowest Rates, Strictest Qualifications
Conventional commercial mortgages offer the lowest rates but require two to three years of tax returns, strong DSCR (typically 1.25x or better), and a seasoned property with stable occupancy. Approval times run 45–90 days. If you have clean financials and time to wait, this is usually the cheapest long-term money.
SBA 7(a) and SBA 504 — Best for Owner-Occupied Properties
SBA loans are government-backed and allow you to finance up to 90% of a commercial property purchase — meaning just 10% down. The 7(a) is more flexible (can include working capital), while the 504 is specifically structured for real estate and equipment with a fixed long-term rate on the SBA portion. The tradeoff is paperwork: SBA loans require full documentation and can take 60–90 days to close.
Stated Income Loans — No Tax Returns Required
Stated income commercial loans are designed for self-employed borrowers, real estate investors, and business owners who can’t show qualifying income on tax returns. Instead of W-2s or 1040s, lenders evaluate the property’s income potential and the borrower’s asset base. Rates are higher than conventional — typically 7.5% to 10.5% — but approval is faster and qualification is far easier. We specialize in stated income commercial loans in Texas for exactly this type of borrower.
Hard Money Loans — Fastest Close, Highest Rate
Hard money lenders make decisions based on the property’s value, not your income. That means you can close in 7–14 days even with credit issues or a property that needs work. The tradeoff is cost: rates from 9% to 13% plus origination points. Hard money is a tool, not a long-term loan — most borrowers refinance into permanent financing once the property is stabilized. See our Texas hard money loan programs.
Bridge Loans — Buy Time While You Stabilize
Bridge loans fill the gap between buying a property and either selling it or refinancing into permanent financing. Common scenarios include acquiring a value-add multifamily property before it’s leased up, or buying a new building before your current one sells. Terms are 6 to 36 months with interest-only payments in most cases.
CMBS / Conduit Loans — Large Loans, Non-Recourse
Commercial Mortgage-Backed Securities (CMBS) loans are pooled and sold to investors on Wall Street. Because they’re non-recourse (the lender can only go after the property, not you personally), they’re popular for larger investments of $2M and up. Rates are competitive, but prepayment penalties (defeasance or yield maintenance) make them inflexible — you can’t easily pay them off early.
DSCR Loans — Qualify on Property Cash Flow Alone
DSCR (Debt Service Coverage Ratio) loans let you qualify based on the rental income of the property, not your personal income. If the property generates enough rent to cover 1.0x to 1.25x the mortgage payment, you qualify. No tax returns, no W-2s, no employment verification. These are extremely popular with real estate investors who own multiple properties and show complex tax situations. See our DSCR loan programs.
What Moves Commercial Property Loan Rates?
- Loan-to-Value (LTV) — Lower LTV = lower rate. Putting more down reduces lender risk.
- DSCR — The higher your property’s net operating income relative to debt payments, the better your rate.
- Credit score — Most lenders want 650+ for conventional; hard money lenders care less.
- Property type — Office and retail carry higher rates than industrial or multifamily right now.
- Loan size — Loans under $1M often carry higher rates; larger loans get better pricing.
- Documentation — Full-doc loans get the best rates. No-doc costs more.
- Treasury yields — Commercial rates loosely track the 5- and 10-year Treasury. When Treasury rates rise, commercial rates rise with them.
Which Loan Is Right for Your Property?
| Your Situation | Best Loan Type |
|---|---|
| Self-employed, can’t show income on tax returns | Stated Income |
| Buying a business property, want low down payment | SBA 7(a) or 504 |
| Need to close in under 2 weeks | Hard Money |
| Investor, want to qualify on rental income only | DSCR |
| Buying a value-add property, need time to stabilize | Bridge Loan |
| Strong financials, stable property, want lowest rate | Conventional Bank |
| Large loan $2M+, want non-recourse | CMBS / Conduit |
Get a Rate Quote on Your Texas Commercial Property
We’re a direct lender with over 25 years of experience in Texas commercial real estate. We can quote you on most loan types in the table above — conventional, stated income, hard money, bridge, and DSCR — often the same day you call. No broker fees. No runaround.