Commercial real estate loan requirements vary dramatically depending on the lender and loan program. Understanding what each type of lender requires will save you time and get you to the right loan faster.
Bank Commercial Loan Requirements
- Credit score: typically 680+ minimum
- Income documentation: 2 years tax returns (personal and business)
- Debt-to-income ratio: under 43% typically
- Down payment: 20% to 35% of purchase price
- Property type: must be stabilized and income-producing
- Experience: often required for first-time commercial investors
- Appraisal: required, lender-ordered
- Environmental report: Phase I often required
Hard Money Loan Requirements
- Credit score: not typically checked
- Income documentation: not required
- Property value: must support 65% LTV
- Property type: most types accepted including vacant and raw land
- Experience: not required
- Appraisal or BPO: typically required, borrower cost
- Down payment: 25–35% of purchase price
DSCR Loan Requirements
- Credit score: typically 620+
- Income documentation: not required — property cash flow used instead
- DSCR ratio: 1.0x or higher
- LTV: up to 80%
- Property type: residential investment properties
The Fastest Path to a Commercial Loan in Texas
If you need speed and flexibility, hard money gets you there fastest with the fewest requirements. For longer-term holds, DSCR and stated income programs offer the best balance. Call 877-895-3634 to discuss your specific situation.