Month: July 2026

Every commercial loan comes down to one test: does the property income cover the debt at the required coverage ratio? Here is what qualification actually requires.

A mixed-use property is financed on its combined income — residential rents plus commercial leases, underwritten as one commercial deal against the debt.

A strip mall is financed on its income — the lender works from the rent roll to NOI against the debt. Tenant quality and lease terms drive the deal.

Yes to both. A hotel refinances on its operating performance, and a bridge loan can fund a repositioning until the property stabilizes.

Hotels typically require 25%–35% down — more than other commercial property, because room income is more variable. Here is what else you bring.

A hotel is financed as a business as well as real estate. Lenders underwrite operating performance — occupancy, ADR, and RevPAR — against the debt.