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How much can you borrow?
Lenders size a commercial real estate loan three ways and lend the lowest. See your maximum loan — and which test limits it.
Your maximum loan
$1,383,000
Limited by Debt service coverage
- Monthly payment
- $9,996
- DSCR at this loan
- 1.25x
- LTV
- 69.2%
- Down payment / equity
- $617,000
Check it: DSCR calculator · LTV calculator · Debt yield calculator
An estimate from typical lender limits, not a loan offer.
How lenders size a commercial loan
Lenders don’t lend a fixed percentage of the price. They run three tests on the property and lend the lowest amount any of them allows — so the number that matters is the one that binds.
Loan-to-value (LTV)
The loan as a share of the property’s value. A 75% LTV limit on a $2,000,000 property allows $1,500,000, whatever the income.
Debt service coverage (DSCR)
Net operating income divided by the annual loan payment. At a 1.25x minimum, the payment can be at most 80% of NOI — so the rate and amortization change the loan size.
Debt yield
NOI divided by the loan amount, used mostly by CMBS lenders. It ignores rate and amortization, so it limits loans when rates are low.
When the DSCR test binds, a lower rate or a longer amortization raises the loan. When LTV binds, only more value — or a program with higher leverage, such as SBA 504 for owner-occupied property — does. The loan-type presets use the stricter end of each range on our requirements page; a lender’s term sheet may differ.
Questions
How much commercial real estate loan can I get?
The lowest of three limits: the loan-to-value limit, the loan whose payment keeps DSCR at the lender’s minimum, and — for CMBS — the loan that keeps debt yield at the minimum. Enter your NOI, value and rate above to see all three.
Why is my maximum loan lower than 75% of the price?
Because another test binds first. When the rate is high compared with the property’s income, the DSCR test allows less than the LTV limit: the payment on a 75% loan would take more than the lender’s share of the NOI.
Is this a loan offer?
No. It is an estimate from the numbers you enter and typical lender limits. Credit, experience, the property and the lender’s own terms decide the final amount — your advisor confirms it with real lenders.
Compare DSCR loans, CMBS loans and SBA 504.
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