Replace your construction, bridge, or hard money loan with permanent fixed-rate financing. Stabilized properties qualify for the lowest rates and longest terms in CRE lending.

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5.5–7.5%

Rate Range

25–30 yr

Amortization

75–80%

Max LTV

$500K+

Min Loan Size

WHAT IS PERMANENT FINANCING?

The Final Step in Your CRE Capital Stack

Permanent financing (also called a takeout loan) replaces short-term debt — construction loans, bridge loans, hard money, or mini-perm facilities — with long-term, fully amortizing mortgage debt. It’s the exit strategy that every short-term lender asks about during underwriting, and the step that converts your project into a stabilized, cash-flowing asset.

Takeout timing is critical. Most construction and bridge lenders require evidence of a permanent financing commitment before they’ll approve the initial loan. Having your takeout strategy lined up early gives you negotiating leverage and prevents costly extensions or forced sales.

Construction Takeout

Replace your construction loan once the project reaches stabilized occupancy. Transition from interest-only draws to fully amortizing permanent debt.

Bridge Loan Exit

Exit 12–36 month bridge facilities once your value-add business plan is complete and the property achieves target NOI and occupancy.

Hard Money Replacement

Replace 10–14% hard money rates with permanent debt at 5.5–7.5%. The monthly savings alone often justify the refinancing costs.

Fixed-Rate Stability

Lock in predictable payments for 5–25 years. Eliminate rate risk and create reliable cash flow projections for investors and lenders.

Multiple Lender Options

Permanent loans available through banks, CMBS, life insurance companies, agency (Fannie/Freddie for multifamily), and SBA programs.

Cash-Out Available

If the property has appreciated since acquisition or construction, permanent financing can include cash-out to recapitalize or fund the next deal.

PERMANENT LOAN OPTIONS

Compare Takeout Structures by Lender Type

The right permanent loan depends on your property type, hold period, and whether you need recourse or non-recourse terms.

Bank / Portfolio

CMBS

Agency

Property Types

All CRE types

Multifamily only

Rate Range

6.0 – 8.5%

5.75 – 8.0%

5.25 – 7.0%

Max LTV

75 – 80%

65 – 75%

75 – 80%

Term

5 – 10 years

5 – 30 years

Amortization

20 – 25 years

25 – 30 years

30 years

Recourse

Full recourse

Non-recourse

Flexibility

High

Low

Medium

Best For

Relationship, smaller

$2M+ stabilized

Apartments 5+ units

TAKEOUT READINESS CHECKLIST

When Is Your Property Ready for Permanent Financing?

Permanent lenders underwrite stabilized properties. Meeting these benchmarks before applying ensures a smooth transition from short-term to long-term debt.

90%+

Stabilized Occupancy

Most permanent lenders require 90%+ occupancy sustained for 3–6 months. Some accept 85% for strong properties in prime markets.

1.20x+

DSCR on Actual NOI

NOI must cover debt service at the permanent loan terms, not the construction loan terms. Run numbers on the takeout rate and amortization.

Completed

Construction / Renovation

All building work must be substantially complete with certificate of occupancy issued. Punch list items may be acceptable with holdback escrow.

3–6 months

Operating History

Lenders want to see actual rent rolls and operating statements from stabilized operations, not projections. The longer the track record, the better.

Current

Third-Party Reports

Appraisal, environmental (Phase I), property condition report, and survey must be current. Many can be updated from the construction loan origination.

6–12 months early

Start Planning

Begin permanent financing discussions 6–12 months before your construction or bridge loan matures. Late starts lead to costly extensions or forced sales.

FREQUENTLY ASKED QUESTIONS

Permanent Financing FAQ

What is the difference between permanent financing and a takeout loan?

They are the same thing. A takeout loan is permanent financing that specifically replaces (takes out) an existing short-term loan like a construction or bridge facility. The terms are used interchangeably in CRE.

How soon after construction completion can I get permanent financing?

Most permanent lenders want 3–6 months of stabilized operating history after construction completion. Some bank portfolio lenders may consider earlier conversion if the property has strong pre-leasing commitments. Plan your construction timeline accordingly.

What happens if my property isn’t stabilized when my bridge loan matures?

You’ll need to either negotiate a loan extension (typically 6–12 months with fees), find a new bridge lender to refinance the existing bridge, or in worst cases, sell the property. This is why planning permanent financing early is critical.

Can I cash out when converting to permanent financing?

Yes, if the stabilized property value supports it. Many borrowers use the permanent takeout to recover their equity investment from the construction or value-add phase. Cash-out proceeds can fund the next project or return capital to investors.

What are mini-perm loans?

A mini-perm is a 3–7 year intermediate loan that bridges the gap between construction and true permanent financing. It’s used when the property needs more time to stabilize or when the borrower wants to wait for better permanent market conditions.

How do I choose the right permanent lender type?

Bank/portfolio for flexibility and relationship pricing. CMBS for non-recourse and competitive fixed rates on $2M+ deals. Agency (Fannie/Freddie) for the best multifamily terms. Life companies for large, trophy assets. Our advisors compare all options for your specific deal.

Ready to Lock in Permanent Financing?

Our advisors compare takeout options across bank, CMBS, agency, and life company lenders. Start planning 6–12 months before your current loan matures.

Get Takeout Quote →

Our 6 commitments to every borrower

Other lenders make promises.
We put them in writing.

Every commitment below exists because real borrowers got burned without it. We built BestLoanUSA to be the lender we wished existed.

Hidden Fees

No surprise charges at closing. Every cost disclosed upfront in writing before you commit.

24hr

Pre-Qualification

Know where you stand within one business day — not weeks or months of silence.

Dedicated Advisor

One point of contact from application to closing. No handoffs, no ghosting, no runaround.

Day 1

Complete Checklist

Full document requirements on your first call. No mid-process surprises asking for "one more thing."

100%

Upfront Pricing

The rate and terms you're quoted are the rate and terms you close on. Period.

5 min

Application

One simple form, multiple lender options. Stop repeating yourself to dozens of brokers.

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· No commitment required

Why borrowers switch to us

Five things your last lender should have done.

Borrowers don't come to us because lending is complicated. They come because someone else made it harder than it needed to be.

1
48 hours to clarity. You'll know exactly where you stand — not wonder for months.
2
Every dollar in writing. The rate and fees you see on day one are the ones you sign at closing.
3
One advisor, start to finish. No handoffs. No vanishing acts. One person who knows your deal.
4
Full checklist, first call. Every document listed upfront. No mid-process surprises.
5
We earn when you close. No upfront fees. Our only incentive is your funded deal.

“I’ve spent over a decade watching good borrowers lose money to a broken process. BestLoanUSA exists so that stops happening.”

Jason Kim

Managing Director, Commercial Lending

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Exit Short-Term Debt with Long-Term Stability