Tell us the property and the amount, and we come back with real numbers on your deal. We do not pull your credit to quote — no inquiry, no score impact, no SSN and no upfront fees at any stage. The full application below is still there when you are ready for it.
We don't need to pull your credit. Just send us your 3 credit scores and we'll give you a real quote — LTV, rate, and terms you can shop around.
We close as a direct lender. If we can't do it in-house or on our warehouse line, we'll place it through our network and still close it for you.
Gather these items now so we can move fast once you have a quote. Fast close when the file is complete.
Pick your application type below and fill in the fields that appear — goes straight to our team, no PDF needed.
Fast closings, all credit OK. No tax returns or income docs required — just the property and your plan.
Full-doc programs. Requires tax returns, P&L, and property financials.
No tax returns. Qualify on asset value or bank deposits. All credit considered.
📧 Email your completed form directly to application@proton.me
📞 Prefer to talk? Call 877-895-3634 — we’ll take the application by phone.
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Questions? Call us at 877-895-3634 or email application@proton.me
No upfront fees. No credit pull required for a quote.
A low credit score does not automatically disqualify you from commercial financing in Texas. Here's what's actually available at every credit level.
Commercial Loans of Texas lends our own money — we don't broker your loan to someone else. Here's why that matters on every deal.
Bottom line: When you work with a direct lender, you get a faster answer, a lower rate, and someone who actually has skin in the game. We've been direct lending in Texas since 1998 — not brokering, not selling your loan to Wall Street. Your loan stays with us.
Beyond the basics — answers to the harder questions about commercial financing in Texas.
Have a question that's not here? Call or submit your deal — we answer in plain English, same day.
Submit Your Deal →30+ key terms every commercial real estate borrower and investor should know — from NOI to DSCR to cap rate. Click any term for a plain-English explanation.
Annual rental income minus all operating expenses — but before mortgage payments, depreciation, and income taxes. NOI is the single most important number in commercial real estate underwriting. It's what the property earns, independent of how it's financed.
Cap rate converts a property's NOI into a value. Divide NOI by the cap rate to get value. Lower cap rate = higher price relative to income (used in stronger markets). Higher cap rate = more income relative to price (used in secondary markets or distressed assets). Cap rates are market-driven — no formula sets them.
Measures how well a property's income covers its mortgage payment. 1.0x = break-even (income exactly equals debt payment). 1.25x = 25% cushion above the payment. Most commercial lenders require 1.20x–1.25x minimum. DSCR loans use this ratio as the primary qualifying metric instead of borrower income.
The loan amount expressed as a percentage of the property's appraised value. 75% LTV on a $400K property = $300K loan. LTV determines how much equity the borrower must contribute. Lower LTV = more equity cushion = lower risk for lender = potentially lower rate. Commercial DSCR loans typically max at 75–80% LTV.
Used in construction and value-add lending. The loan amount as a percentage of the total project cost (land + construction/rehab). Different from LTV, which uses appraised value. Most construction lenders will lend 75–80% LTC. At 75% LTC on a $500K project, the loan is $375K and you contribute $125K.
The estimated market value of a property after all planned renovations are complete. Used heavily in hard money lending and fix-and-flip underwriting. Lenders typically lend based on purchase price LTV, not ARV — but ARV determines whether the deal makes sense and how much equity will be created by the rehab.
Annual pre-tax cash flow divided by total cash invested. The real-world return on your out-of-pocket investment after paying the mortgage. Different from cap rate (which ignores financing). A 6% cap rate property with 75% LTV at today's rates might yield only 2–4% cash-on-cash — or even negative. CoC is what actually lands in your account.
A quick screening metric: property price divided by annual gross rent. Lower GRM = more rent relative to price = better income deal. Useful for rapidly comparing deals in the same market but not a substitute for full underwriting — it ignores expenses, vacancy, and debt service completely.
A loan where payments cover only the interest owed — no principal is paid down during the IO period. Common in bridge loans, hard money, and commercial deals where the investor plans to sell or refinance before the loan converts to amortizing. IO maximizes cash flow during the hold period but leaves the full principal balance due at maturity.
A large lump-sum payment due at the end of a loan term — often the entire remaining principal. Commercial loans frequently have a 5-year or 10-year balloon on a 25–30 year amortization schedule. This forces a refinance or sale at maturity. Know your balloon date and have your exit strategy in place 12–18 months before it hits.
Title is legal ownership of a property. "Clear title" means no undisclosed liens, judgments, or ownership disputes cloud the property. Title insurance protects lenders and buyers from title defects discovered after closing. In Texas, title insurance rates are set by the state — the premium is the same regardless of which title company you use, so shop for service quality.
An IRS provision allowing investors to defer capital gains taxes by rolling proceeds from one investment property sale directly into the purchase of another "like-kind" property. Rules: identify replacement property within 45 days of closing; close within 180 days; use a qualified intermediary to hold funds. Can be repeated indefinitely — some investors never pay capital gains tax in their lifetime.
The expected percentage of potential rent lost to vacant units and uncollected rent. Lenders apply a standard vacancy factor (typically 5–10% for residential, 10–15% for commercial) when underwriting — even if the property is 100% occupied today. This is the difference between "potential gross income" and "effective gross income."
Submit your deal — we will walk through the numbers with you and issue a term sheet in 24 hours.
Discuss Your Deal →We've closed Texas commercial loans in as few as 7 business days. Here's exactly how the process works — and why we move faster than any bank you've tried.
Fill out our one-page application or call us directly. We need the basics: property address, purchase price or loan amount, property type, and your exit strategy (or refinance goal). No financials required at this stage.
We personally review every submission. You won't deal with a junior processor or an automated system.
We issue a non-binding term sheet with proposed loan amount, rate, LTV, and term. This is a real answer from a real decision-maker — not a "we'll get back to you" after a committee meeting.
If the deal needs structure (e.g., different LTV, IO period, partial release provisions), we discuss it now — not after you've spent $2,000 on an appraisal.
We order a third-party appraisal (or desktop BPO for smaller deals) and review property condition, title, rent rolls, and market comps. For income-producing properties, we underwrite to DSCR — not personal income.
We work in parallel with your attorney and title company. Most commercial lenders work sequentially — we don't. That's how we cut weeks off the timeline.
Once underwriting is complete, we issue a firm loan commitment letter — the binding agreement that says we will fund this loan at these terms. No more surprises at the closing table.
Conventional banks issue commitments only after 30–60 days of processing. Our commitment comes in week two — giving you time to negotiate, satisfy contingencies, or plan your rehab.
We coordinate directly with your title company to schedule closing. Funds wire the day of closing. Most of our loans close in 2–3 weeks total — some faster when the property and title are clean.
We remain your lender for the life of the loan. No loan servicing transfers. Same contact, same terms, same relationship — whether you're in month 3 or year 5.
We keep the paperwork minimal. Here's what's actually required for a standard commercial loan:
One short form. We review it today and send a term sheet within 24 hours. No commitment required.
Submit Your Deal →Bridge, hard money, construction, permanent, SBA — each serves a different purpose at a different cost. Here's how they compare so you can match the right loan to your deal.
Used to bridge from one state to another: buy before you sell, buy a property that needs stabilization before a permanent loan, or fund a value-add project before a conventional refinance. Lower rate than hard money, slightly slower close.
The fastest close, highest rate. Used for fix-and-flip, auction purchases, and distressed acquisitions that can't qualify for bridge or conventional. Property condition is irrelevant — we lend on ARV and equity.
Funds released in draws as construction milestones are met — not upfront. Interest only on drawn amount. Converts to permanent loan or is paid off upon completion. Requires approved plans, permits, and a licensed GC.
The long-game loan: stabilized rental income qualifies the loan, not your personal W-2. DSCR loans have no property count limit, work for LLCs, and close faster than conventional. Used for buy-and-hold investors who want predictable 30-year payments.
Only for businesses that owner-occupy the property (51%+ for 7(a), 51%+ for 504). Lowest down payment available. Slowest close. SBA 504 splits the loan between a bank (50%) and SBA CDC (40%) — best fixed-rate option for qualifying businesses.
Most deals use multiple loan types in sequence. Here's how experienced Texas investors stack them:
Describe your project and we will tell you which structure makes the most sense — and issue a term sheet within 24 hours if it's fundable.
Submit Your Deal →Most deals close in 7–21 days. Here's exactly what happens from application to funding.
Most of our borrowers complete steps 1–2 in under 30 minutes. Get your soft quote today — no credit check, no commitment.
Start Step 1 Now — Free QuoteI've been in Texas commercial lending since the early 1990s — through the S&L crisis, the dot-com bust, 2008, COVID, and the rate spike of 2022–2023. I've seen every market cycle, and I've funded deals that banks walked away from in every single one of them.
What frustrated me about working inside large institutions was the bureaucracy. A small business owner with a great deal and real equity would get declined because of a DTI ratio calculated off a W-2 they didn't have. A real estate investor with 15 profitable rentals couldn't get loan #16 because of Fannie Mae's arbitrary 10-property cap.
I started Commercial Loans of Texas to be the lender I wished existed when I was a borrower. No committee. No 60-day wait for a "no." No junior underwriters who've never seen a real property. Just a direct decision from someone who's been doing this for three decades.
We focus exclusively on Texas because I know this market. I know what DFW cap rates look like in a correction. I know which Houston submarkets hold value. I know the Texas foreclosure process cold. That local knowledge is what lets me say yes faster and with more confidence than any out-of-state lender can.
"The most important thing in commercial lending isn't the borrower's credit score — it's the deal. A great property with strong equity and a clear exit strategy is fundable. I've said yes to borrowers with 580 credit scores on deals banks wouldn't touch, and I've said no to borrowers with 780 scores on deals that didn't make sense. The property is the collateral. That's what I underwrite."
Submit your deal and we personally review every application that comes through. No junior staff, no auto-denials. A real human decision from someone who knows Texas commercial real estate.
Submit Your Deal →We are a direct lender in Texas and the 43 states we serve, closing since 1998. Pick your market for what we finance there, or send the deal and get terms in writing the same day.
Not listed? We lend statewide — see every Texas market or get terms in writing. Minimum loan $200,000.
Standard commercial real estate depreciates over 39 years, straight-line. A cost segregation study can reclassify a meaningful chunk of that basis into 5, 7, and 15-year property — accelerating the deductions into the years you actually need them.
When a commercial property closes, the IRS default is to depreciate the entire building over 39 years on a straight line — one number, divided evenly, no matter what's actually inside the walls. A cost segregation study is an engineering-based analysis that breaks the purchase price apart into its real components: structural building shell (39-year), but also land improvements like paving, landscaping, and site lighting (15-year), and personal property like specialized electrical, certain flooring, millwork, and equipment-dedicated wiring (5 or 7-year). Reclassifying even 20-30% of a purchase price into those shorter recovery periods can move a substantial depreciation deduction from year 20 of ownership into year one.
The tax benefit is largest in the same year the property is placed in service — which is exactly when many investors are financing a new acquisition, funding a renovation, or absorbing a large debt service number for the first time. A cost segregation study run shortly after closing (or after a major renovation/build-out) front-loads real, deductible losses against other income in the years the investor is most likely to want them, rather than spreading a flat deduction evenly across four decades.
Paving, landscaping, exterior lighting
Equipment-dedicated circuits and wiring
Certain flooring, millwork, decorative fixtures
Furniture, fixtures, and equipment tied to the property
Cost segregation doesn't change your loan terms directly, but it changes the cash-flow picture behind the deal — accelerated depreciation can meaningfully offset taxable income in the early hold years, which is often exactly when debt service is highest relative to a property still stabilizing. We regularly work with investors coordinating an acquisition or refinance around a planned cost segregation study; if that's part of your plan, tell us up front so we can structure the closing timeline to support it.
Tell us your timeline — we'll structure the closing to work alongside it.
Get StartedDSCR and LTV get all the attention, but many commercial lenders size a loan around debt yield first — and it's the one metric that ignores interest rate entirely.
Debt yield is a simple ratio: net operating income divided by the loan amount. Unlike debt service coverage ratio, it doesn't care what your interest rate or amortization schedule looks like — it strips financing terms out entirely and asks one blunt question: if this lender had to foreclose and hold the property as a straight cash return, what yield would the loan amount actually produce? A $2,000,000 loan against a property generating $180,000 in NOI has a 9% debt yield, full stop, regardless of whether the note carries a 6% or 9% rate.
That's exactly why lenders lean on it as a floor. DSCR can look healthy purely because rates are low or amortization is stretched to 30 years — debt yield can't be gamed the same way, since it never touches the rate or the amortization schedule at all. Most conventional and CMBS-style commercial lenders want to see a debt yield in the 8-10%+ range before they'll size a loan to full leverage; anything meaningfully below that and the loan amount typically gets trimmed until the ratio clears the floor, no matter how strong DSCR or LTV look on paper.
When rates rise, DSCR compresses on its own — the same NOI now has to cover a bigger debt service number. Debt yield doesn't move with rate at all, which means in a rising-rate market it increasingly becomes the binding constraint on how much a property can actually borrow, even when DSCR still technically pencils. Borrowers who only model DSCR sometimes get surprised at term sheet stage when the loan amount gets sized down to satisfy a debt yield floor they never checked.
Measures loan against property value — moves with appraisal/cap rate assumptions
Measures NOI against actual debt service — moves with rate and amortization
Measures NOI against loan amount only — ignores rate and amortization entirely
We size every commercial loan against all three ratios up front, not just the one that happens to look best — so the number on your term sheet is the number that actually closes, not one that gets re-traded once a debt yield floor shows up in underwriting.
Send us the property's NOI and target loan amount — we'll tell you exactly where debt yield lands and what that means for your sizing.
Get StartedKitchen equipment, hoods, grease traps, dining room finish-out, ADA compliance — restaurant and retail build-outs run expensive before a single dollar of revenue comes in. We finance the interior work, not just the real estate.
A restaurant lease with a strong location doesn't guarantee a strong loan file — landlords increasingly hand over vanilla shell space and expect the tenant to fund every square foot of the kitchen, dining room, and back-of-house build-out themselves. Between commercial kitchen equipment, Type I hood systems, grease interceptors, walk-in coolers, ADA-compliant restrooms, and dining room finish, a full build-out on a mid-size restaurant space commonly runs $150-$400+ per square foot before a single customer walks in. Conventional bank financing is a poor fit here — banks want stabilized income history, and a pre-opening restaurant has none.
We underwrite tenant improvement and build-out financing around the total project cost and the operator's experience, not just trailing financials. That includes ground-up restaurant conversions, second-generation restaurant spaces (taking over an existing kitchen shell), and retail-to-restaurant conversions that need mechanical, electrical, and plumbing work far beyond cosmetic finish.
Hoods, walk-ins, line equipment, POS systems
Grease traps, HVAC, electrical service upgrades, ADA
Dining room, flooring, millwork, signage
Repurposing an existing restaurant shell
Landlords typically negotiate a fixed build-out period before rent commences — often 60-120 days. A bank construction-draw process built for ground-up commercial real estate rarely moves fast enough to hit that window without eating into your free-rent period. We structure draws around your actual build-out schedule (permit, rough-in, equipment install, finish) so funding keeps pace with the contractor, not the other way around.
Tell us the project scope and timeline — we'll structure draws around your actual build-out schedule.
Get StartedReviews
Real Google reviews, word for word, from people we have closed loans for. 4.8 out of 5 from 38 Google reviews.
“Let me just start by saying that the only reason I give him five stars is because there is no higher. Daniel Peterson is one of the most honest and transparent person I have ever dealt with. Getting me a refinance was not going be easy but right from the start he gave it his all. Just as we would hit bumps he would not give up. He would look for other ways and would always stay motivated to make it happen. Just as I thought that it wasn’t going to get done. He would pull out the rabbit from the hat, as the old saying goes, all the way to the end. If you are ever in need of a refinance or to purchase another home or anything in this field trust me you will not be disappointed with him. I truly say if he can’t do it it’s probably because it cannot be done but if he does he will find a way.”
“I would highly recommend Commercial Loans of Texas for commercial lending. My experience with Dan was top notch. Starting from consultation and application to guidance navigating the daunting underwriting process, Dan's experience and insight was invaluable to reach a successful closing. Will definitely engage again in the future.”
“I would highly recommend Dan Peterson with Commercial Loans of Texas. I am a physician in private practice, and I approached Dan about helping me to navigate the commercial loan process for a new medical office. He was proactive and very helpful during the process. His experience and knowledge made a big difference. He is amazing.”
“Dan Peterson is the best commercial lender hands down! He truly knows his stuff and makes sure that you know all of the pertinent info upfront. I've never seen a commercial loan close this fast. Amazing!! I look forward to working with him in the future for my personal deals and on deals for clients that I will be referring!”
“The Best Commercial Loan Company in Texas. "Danial Peterson !" We were running out of options, doors after door were slammed in our faces! Daniel came through for us when NO ONE ELSE WOULD! We will be eternally grateful for all Daniel and his company has done for us! Give Daniel a call and he will make your dream come True!”
“This company offers very delicate customer services, Dan Peterson is very nice and professional that he was trying to help me to get finance the property but unfortunately the property is in rural area that was not qualify the loan. Dan referred me to another company to finance the property. Thank Dan!”
“Dan Peterson secured a commercial loan for me with ease and a no b.s. approach. I had a few obstacles to overcome and a tight closing window and Dan made it happen for me. I can't say enough about Dan and his team at Commercial Loans of Texas. If in need of a commercial loan...Dan's your man.”
“Our client who was purchasing an apartment building in Montrose- was introduced to Commercial Loans of Texas. The commercial loan officer was hands-on, kept us updated in a timely fashion, was able to provide the best rate and terms available in this market.” Linda Charmaigne”
“This Is The Best Commercial Loan Company In The State Of Texas. Daniel Peterson Is Awesome 🤩 He Answer’s Every Call ☎️ And Goes Above ☝🏾 And Beyond To Maker Sure Business 👨🏽💼 Is Handled. I Highly Recommend This Company To Anyone Respectfully!!!!”
“It's been a pleasure working with a highly professional, knowledgeable and responsive loan master, Mr. Dan Peterson. He is the best. We were able to successfully close very tough deals back to back. For any loan issue, go to Dan! He is the man.”
“Worked with Dan from Commercial Loans of Texas. We had been working for two months to refinance our loan on a property owned by my LLC. I got tired of waiting for other slow institutions and decided to give Dan a call. He had me closed…”
“Daniel Peterson did a fantastic job of closing my construction loan. He made me aware of all financing options and went out of his way to investigate them. We closed on time at an interest rate that was actually slightly lower than we…”
“I have nothing but good to say of Daniel Peterson and Commercial Loans of Texas. My loan did not go through but not due to any fault of Daniel or his company. Even after several weeks I called and asked about my appraisal refund and…”
“Daniel was great to work with throughout the entire process. He answered questions quickly and the loan funded within three weeks. I would highly recommend him and look forward to working with him in the future on some new projects.”
“If you need to close a complex transaction quickly, Daniel is your guy! He won't sleep until he's able to put a solution in place to help you close your deal. Thanks for all the hard work, Daniel!”
“Dan and the team were great! The process was smooth and friendly, Texas style. I highly recommend Commercial Loans of Texas. We'll defiantly be doing business with them in the years to come.”
“Dan is Truly AMAZING. Promised he would close on a million dollar property on time and he delivered. A genius at what he does.Thanks Dan, looking forward to the next phase.”
“Dan found terms I didn't think were out there for commercial! Very satisfied and we'll definitely be using Commercial Loans of Texas again on our next conventional deal!”
“Daniel Peterson got me an amazing mortgage that no one else could do. I don’t see why I would work with anyone else. Amazing service. Thank you.”
“Dan Peterson very forthright and transparent. Gave me great guidance and really appreciate him going out of his way for my commercial loan.”
“As a former Texas Real Estate Commissioner I can tell you this group knows what it takes to get business done with prompt professionalism.”
“I strongly recommend Commercial Loans of Texas! Daniel was instrumental in the acquisition of a hard-money bridge loan in 2016.”
“We Are Thankful for Dan Peterson and the team of underwriting who have given us the monies to consolidate our debt. Thank you.”
“Got a challenging loan approved and closed. Best customer service. They get'm DONE in a timely manner. Thank you!⭐️⭐️⭐️⭐️⭐️”
“Dan Peterson was great to work with, closing my commercial loan refinance just as I needed. Thanks Dan!”
“Very helpful in understanding would recommend anybody that doesn't have the best way home”
“Every step from LOI through closing was guided with great service. "Just Right"”
“Thank you Dan Peterson. You sent me in the right direction. I appreciate…”
“great experience will do further business with Dan.”
“Great working with this company”
“Very frenly company”
Underwriting is not one process applied to every building. Each page below sets out what that asset class is actually judged on, and what tends to kill a file.