Commercial property interest rates in Texas in 2026 reflect a complex interplay of Federal Reserve policy, credit market conditions, property type risk, and individual borrower and property strength. After the rapid rate increase cycle of 2022 to 2023 and a partial reduction cycle beginning in 2024, commercial lending rates have settled into a range that is higher than the historic lows of 2020 to 2021 but competitive on a long historical basis. Commercial Loans of Texas has been tracking and offering commercial loan rates in Texas since 1998 — 28 years of rate cycles, market disruptions, and financing innovation. We can tell you what rates are today, why they are where they are, and what factors specific to your property and situation will determine the rate you actually receive. The headline rate ranges below are starting points — your actual rate depends on multiple factors we will walk through. Call 877-895-3634 or apply online to get an actual rate quote for your Texas commercial property today.
2026 Texas Commercial Property Interest Rates — By Loan Type
| Loan Type | LTV | Term | Key Driver |
|---|---|---|---|
| Hard Money / Bridge | 65-70% | 12-24 months | Property value, equity |
| DSCR (stabilized property) | 70-80% | 30 years | DSCR, LTV, credit |
| Multifamily 5+ Units | 75-80% | 25-30 years | Occupancy, DSCR |
| Commercial RE / Mixed-Use | 65-75% | 20-25 years | Tenant quality, DSCR |
| Construction | 65-70% LTC | 12-24 months | LTC, builder experience |
| Land Loan | 50-65% | 12-36 months | Entitlements, location |
| Cash-Out Refinance | 70% max | 20-25 years | Equity, DSCR |
| No-Doc / Stated Income | 65% | 12-36 months | Equity, property value |
| Assisted Living / Healthcare | 65-75% | 20-25 years | Census, DSCR |
Rates are quoted per deal — call 877-895-3634 for today’s number on your deal.
What Determines Your Texas Commercial Loan Rate?
Multiple factors combine to determine your specific rate within the ranges above:
- Loan-to-Value (LTV): Lower LTV means lower rate. A 60% LTV loan on a stabilized apartment building commands a significantly better rate than an 80% LTV loan on the same property. The additional equity buffer reduces lender risk.
- Debt Service Coverage Ratio (DSCR): Higher DSCR means lower rate. A property generating 1.50 DSCR presents less default risk than one at 1.22 DSCR — lenders price that difference in the rate.
- Credit Score: Matters most for DSCR and conventional programs. For hard money and bridge loans, credit score has minimal impact on rate. For DSCR programs, 720+ credit often achieves the best available rates; 620 to 680 may add 0.25 to 0.50%.
- Property Type: Industrial and multifamily typically achieve the best rates due to liquidity and income stability. Special-use properties (hotels, assisted living, gas stations) typically command higher rates due to underwriting complexity.
- Loan Term: Shorter-term loans often come with rate adjustments. 5-year fixed terms are common on DSCR commercial loans; the rate resets at the end of the fixed period.
- Market Conditions: The 10-year Treasury yield is the primary benchmark for commercial mortgage rates. As the 10-year Treasury moves, DSCR and conventional commercial rates move with it — typically with a spread of 200 to 300 basis points above the 10-year.
How Fed Rate Changes Affect Texas Commercial Loans
The Federal Reserve’s target rate (Fed Funds Rate) directly drives short-term borrowing costs — credit lines, adjustable-rate mortgages, and hard money rates that are indexed to SOFR or prime rate. It has an indirect effect on long-term fixed commercial mortgage rates, which track the 10-year U.S. Treasury. When the Fed cuts rates, short-term commercial lending rates fall relatively quickly (within 30 to 90 days). Long-term fixed commercial mortgage rates may not fall as much or as fast if bond market inflation expectations remain elevated. This is why it is possible to see the Fed cut rates and yet long-term commercial mortgage rates remain flat or even rise slightly — the two are connected but not identical.
Texas Commercial Rate Comparison by Property Type
| Property Type | Typical Rate (DSCR Program) | Why |
|---|---|---|
| Multifamily (5+ units) | 6.75-8.5% | Most liquid asset class, strong TX demand |
| Industrial / Warehouse | 7.0-8.5% | Strong fundamentals, e-commerce demand |
| Retail (necessity-anchored) | 7.5-9.0% | Stable but e-commerce headwinds priced in |
| Office (suburban) | 8.0-10% | Elevated vacancy risk post-remote work |
| Self-Storage | 7.5-9.0% | Recession-resistant, simple operations |
| Hotel / Hospitality | 8.5-11% | Revenue volatility, management complexity |
| Assisted Living / Healthcare | 7.0-10% | Demographics positive, licensing complexity |
How to Get the Best Texas Commercial Loan Rate
The most effective strategies for achieving the best rate available on your Texas commercial loan: maximize your equity position (lower LTV = lower rate), ensure the property is as stabilized as possible before applying for permanent financing, present clean financial documentation, choose the right loan program for your property type, and work with a lender who has multiple capital sources rather than a single rate sheet. We shop our deals across multiple capital sources to find the most competitive rate for each borrower and property type.
Frequently Asked Questions — Texas Commercial Property Interest Rates
Are Texas commercial loan rates higher than residential mortgage rates?
Generally yes, though the gap has narrowed. Commercial DSCR loans typically run 0.5 to 2.0% higher than comparable residential rates due to the complexity of commercial underwriting, shorter fixed-rate periods, and the commercial property’s typically lower liquidity versus single-family homes. Hard money commercial rates (10 to 14%) are significantly higher than residential rates in exchange for speed and flexibility.
What is the best commercial loan rate available in Texas in 2026?
For the strongest deals — well-located stabilized multifamily with 90%+ occupancy, 75% LTV or lower, strong DSCR of 1.35+, and a borrower with good credit and experience — agency-equivalent multifamily rates of 6.75 to 7.5% are achievable. For DSCR commercial real estate (retail, office, industrial) with similar strength, 7.0 to 8.0% is realistic. Hard money rates start at call for today's rate and represent a different product with different use cases.
Can I lock in a Texas commercial loan rate before closing?
Yes. Rate locks are available on DSCR and conventional commercial programs, typically for 30 to 60 days. Rate locks may come with a fee or a slightly higher base rate in exchange for the certainty. Hard money rates are typically not locked — they are set at closing based on the conditions at that time, though our rate ranges are narrow and predictable.
How do Texas commercial loan rates compare to other states?
Texas commercial loan rates are generally in line with Sun Belt markets and slightly better than high-cost coastal markets. Texas property values, operating costs, and regulatory environment are all favorable to lenders, which can translate to better rates and terms versus comparable assets in California or New York. The absence of Texas state income tax also improves investor net returns on Texas commercial assets.
Will Texas commercial loan rates drop in 2026?
Rate forecasting is inherently uncertain, but the market consensus as of mid-2026 anticipates continued gradual Federal Reserve easing if inflation remains controlled. If the 10-year Treasury declines, long-term commercial mortgage rates may follow. Short-term hard money rates may also decrease modestly. We recommend calling 877-895-3634 for a current rate quote rather than waiting for a rate forecast to materialize — market timing on commercial loan rates is difficult and the deals you miss while waiting often cost more than a modest rate improvement would save.
Ready to get a current rate quote on your Texas commercial property? Call 877-895-3634 or apply online at Commercial Loans of Texas. We quote real rates on real deals — no teaser rates, no bait-and-switch. Texas-based direct lender since 1998.