Qualifications for a commercial loan

[Lynn Ramdin]

Hi BP Community!

I am looking at an 8 unit apartment that is listed under $500k. Would it qualify for a commercial loan? Some people have told me that commercial lenders won't look at anything less that $1 million. If it won't qualify, what other types of lending could I look at?

[Greg Downey]

@Lynn Ramdin this is a very common misconception that is unfortunately propagated on this site.  There are loan products at nearly every price range, including the $500k mark.  The rub here is that there isn't an agency option that anchors the market like there is in the $1MM+ MF space.  

SOOOOOO, this translates to a bit higher interest rates and terms that aren't quite as favorable as those offered above $1MM.  There isn't any reason that a well qualified borrower won't be able to buy in this price range though.