There are more than a dozen types of commercial real estate loans in 2026 - and choosing the wrong one costs you money, time, or both. This guide breaks down every major CRE loan type, compares them side by side, and gives you a clear decision framework for matching the right financing to your deal.
The Master Rate Table: Every CRE Loan Program (April 2026)
| Loan Type | Rate Range | Max LTV | Typical Term | Best For |
|---|---|---|---|---|
| Agency (Fannie/Freddie) | 5.75 - 7.00% | 80% | 5 - 30 yr | Stabilized multifamily 5+ units |
| Life Company | 5.50 - 6.75% | 55 - 70% | 10 - 30 yr | Lowest rate, trophy assets |
| CMBS / Conduit | 6.00 - 7.50% | 70 - 75% | 5 - 10 yr | Stabilized, non-recourse, diverse property types |
| Conventional Bank | 5.50 - 8.00% | 70 - 80% | 5 - 10 yr | Stabilized, bankable borrowers |
| SBA 504 | Fixed, Treasury-based | 90% | 20 - 25 yr | Owner-occupied CRE, low down payment |
| SBA 7(a) | Prime + 2.25 - 3.00% | 85 - 90% | 25 yr | Business acquisition + real estate |
| DSCR | 6.50 - 9.50% | 65 - 80% | 30 yr | Rental investors, no income docs |
| Bridge (Institutional) | 7.80 - 11.00% | 70 - 85% LTC | 12 - 36 mo | Value-add, transitional, lease-up |
| Bridge (Private/Hard Money) | 10.00 - 15%+ | 60 - 75% | 6 - 24 mo | Speed, distressed, first-time sponsors |
| Construction | 7.50 - 11.00% | 75 - 85% LTC | 12 - 36 mo | Ground-up development |
| C-PACE | 6.00 - 9.00% | Up to 35% of value | 20 - 30 yr | Energy/water improvements, non-dilutive |
| Private Credit / Mezz | 9.00 - 15%+ | Up to 85 - 90% combined | 12 - 36 mo | Gap filling, complex capital stacks |
The Decision Framework: Which Loan Do You Need?
Before comparing lenders, answer three questions:
1. Is the property stabilized or in transition?
- Stabilized (85%+ occupied, 12+ months of income) -> Permanent debt: Agency, Life Company, CMBS, Bank, or DSCR
- In transition (vacant, renovating, lease-up) -> Bridge or Construction
2. Do you have income documentation?
- Yes (W-2s, tax returns, business financials) -> Full-doc conventional, SBA, Agency
- No / prefer to use property income only -> DSCR
3. Do you occupy the property?
- Investment property, no personal occupancy -> DSCR, Agency, CMBS, Bridge
- Business occupies the property -> SBA 504 or SBA 7(a)
Loan Types Explained
Agency Loans (Fannie Mae / Freddie Mac)
Agency loans are the gold standard for multifamily investors with stabilized 5+ unit properties. Fannie Mae and Freddie Mac purchase these loans from originating lenders, creating a deep, liquid market with consistently competitive pricing.
- Who qualifies: Stabilized multifamily (5+ units), experienced sponsors, 1.25+ DSCR
- Key advantage: Non-recourse, long terms (up to 30 years), fixed rates, assumable
- Key constraint: Multifamily only; significant documentation; 60 - 120 day close
- Rate driver: 10-year Treasury spread (~170 - 200 bps over Treasury)
Life Company Loans
Life insurance companies are the lowest-rate lenders in commercial real estate - and the most selective. They lend only on trophy or near-trophy assets in major markets, underwriting conservatively at 55 - 70% LTV.
- Who qualifies: Institutional-quality assets, Class A or B+ in major markets, strong in-place cash flow
- Key advantage: Lowest rates available; often lock rate at application (vs. CMBS which locks at funding); full assumability; borrower-friendly modification process
- Key constraint: 65 - 70% LTV max; selective on markets and property types; not for value-add; 60 - 90 day close
CMBS / Conduit Loans
CMBS loans are packaged into commercial mortgage-backed securities and sold to bond investors. This capital structure allows for competitive rates, non-recourse financing, and flexibility across property types - but comes with rigid servicing that makes modifications difficult.
- Who qualifies: Stabilized income-producing properties of most types; most conduit lenders focus on $2M+
- Key advantage: Non-recourse; competitive rates; works for retail, office, hotel, multifamily, industrial; no personal income documentation
- Key constraint: Yield maintenance or defeasance prepayment (very expensive); harder to modify; rate lock often not until closing
Conventional Bank Loans
Traditional bank loans remain the most flexible permanent financing option for investors who can qualify on full documentation. Banks underwrite the borrower and the property.
- Who qualifies: Strong credit (680+), 2+ years tax returns, profitable business or W-2 income, stabilized property
- Key advantage: Relationship-driven; flexible terms; can structure around unique deals
- Key constraint: Personal guarantee required; typically 5 - 10 year balloon with amortization up to 25 years
SBA 504 Loans
The SBA 504 program is the most powerful tool for small business owners purchasing or refinancing owner-occupied CRE. Structure: bank (50%) + Certified Development Company (40%) + borrower (10%).
- Who qualifies: Businesses occupying 51%+ of the property; for-profit; meeting SBA size standards
- Key advantage: 90% LTV (10% down); long-term fixed rate on the CDC portion; up to 25-year term
- Key constraint: Owner-occupied only; complex dual-lender structure; 60 - 120 day close; cannot be used for investment properties
SBA 7(a) Loans
The SBA 7(a) is the Swiss Army knife of small business financing - it can fund real estate, equipment, working capital, and business acquisitions simultaneously.
- Who qualifies: Most for-profit small businesses; 2+ years in business preferred
- Key advantage: Up to $5M; 85 - 90% LTV; 25-year term for RE; can bundle real estate + business acquisition
- Key constraint: Rate floats with Prime; personal guarantee required; not for pure investment properties
DSCR Loans
DSCR loans qualify borrowers based entirely on the property's rental income - no W-2s, no tax returns, no personal income verification required. They are the primary vehicle for real estate investors scaling a portfolio.
- Who qualifies: Investment property owners; rental income must cover debt service (typically 1.20+ DSCR); 660+ credit score
- Key advantage: No income documentation; works for LLCs; scales with portfolio; 30-year terms; closing in 2 - 4 weeks
- Key constraint: Rate premium over conventional; prepayment penalties standard; most retail DSCR lenders cap at 4 - 8 units (YieldStack sources programs for 5 - 20 units)
Bridge Loans
Bridge loans are short-term, transitional financing for properties not yet ready for permanent debt. They underwrite on future value, not current income. -> See full breakdown: Commercial Bridge Loan Guide 2026
Construction Loans
Construction loans fund ground-up development, disbursed in draws as construction milestones are completed.
- Who qualifies: Experienced developers with proven track records; most lenders require 2+ prior completed projects
- Key advantage: High leverage on total project cost (75 - 85% LTC); funds both land and construction
- Key constraint: Highest underwriting scrutiny; significant equity required; floating rate; personal recourse standard for most sponsors
C-PACE Financing
C-PACE (Commercial Property Assessed Clean Energy) is a non-dilutive financing tool for energy efficiency, renewable energy, water conservation, and resiliency improvements on commercial properties.
- Who qualifies: Property owners in eligible states; project must be a qualifying improvement
- Key advantage: Repaid as a property tax assessment (not a traditional loan); stays with the property; up to 30-year term; can be layered without displacing senior debt
- Key constraint: Lender consent required; not available in all states; limited to qualifying improvement costs
Lender Type Comparison: Who Actually Makes These Loans?
| Lender Type | Loan Products | Speed | Documentation | Flexibility |
|---|---|---|---|---|
| Agency (Fannie/Freddie DUS lenders) | Agency multifamily | 60 - 90 days | Full doc | Low (standardized) |
| Life Insurance Companies | Permanent (all types) | 60 - 90 days | Full doc | Low-medium |
| CMBS Conduit Lenders | Conduit loans | 45 - 75 days | Moderate | Low (securitized) |
| Banks / Credit Unions | Conventional, SBA | 30 - 90 days | Full doc | High |
| Debt Funds / Bridge Lenders | Bridge, mezz, construction | 2 - 4 weeks | Light | High |
| Hard Money / Private Lenders | Bridge, fix-and-flip | 7 - 21 days | Minimal | Very high |
| DSCR Lenders | DSCR (non-QM) | 2 - 4 weeks | Property income only | Medium |
The YieldStack Advantage
The hardest part of CRE financing isn't understanding the loan types - it's knowing which specific lender to call for your specific deal. A $2.5M DSCR refi on a 12-unit multifamily in Phoenix has a completely different lender pool than a $4M bridge loan on a value-add retail strip in Nashville.
Traditional commercial mortgage brokers charge upfront retainers of $2,500 - $10,000+ just to start shopping your deal. Platforms like LoanBase charge a paid subscription for broker access to lender directories.
YieldStack uses AI to match your deal - property type, loan amount, LTV, timeline, geographic market - to the right lenders across all of these categories, and delivers competitive term sheets without upfront fees.