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Randy Mathis
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Commercial Loans

Last updated: October 2026

Once you move past four units, or buy a building with a storefront, you're in commercial lending. There's no rate sheet to look up. Every commercial request is reviewed individually on what the property earns and who you are as a borrower. The better your package, the faster you get a real answer.

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Do I qualify?

Send your rent roll and T12

Key Facts

  • Commercial mortgage loans finance income-producing property.
  • The property types I work with include 5+ unit multifamily, mixed-use, office, retail, warehouse, self-storage, and automotive.
  • Terms are set deal by deal on the property's income and the borrower's profile rather than published in advance.
  • Randy Mathis, NMLS# 1516760, takes commercial requests to lenders in a network of 100+ through Lumin Lending Inc. and is licensed in 15 states.

What Is a Commercial Loan?

A commercial loan is a mortgage to buy or refinance a business property. Unlike a residential loan, it's based on the property's income potential, the borrower's business financials, and the overall deal structure.

That's why there's no published grid. A residential lender can publish one because a single-family home in one city behaves a lot like a single-family home in another. A twelve-unit building with two vacancies is a different risk from a strip center with one anchor tenant or a self-storage facility in lease-up. Each gets its own look. The underwriter reads the rent roll and the operating history, then decides what the building can carry.

Most people don't realize a mortgage broker can handle commercial loans too. I do both. If you also need residential rental financing, my DSCR loans and Non-QM programs cover 1-4 unit investment properties, qualified on the property's rental income rather than your personal tax returns on most programs. One broker for residential and commercial requests, with access to 100+ lenders through Lumin Lending.

Property Types We Work With

A property type on this list means I can take your request to lenders who look at that kind of building. It doesn't mean every building of that type will fit.

5+ Unit Multifamily
Mixed-Use
Office
Retail
Warehouse
Self-Storage
Automotive

Who Is a Commercial Loan For?

Commercial loans are for business-purpose property. These are the requests I see most.

  • The investor moving past four units. You've been buying 1-4 unit rentals and found a 5+ unit building. The financing moves from published residential guidelines to commercial underwriting.
  • The mixed-use owner. You own apartments over a storefront, and your loan is coming due or no longer fits your plans for the building.
  • The small-commercial buyer. You're buying a retail strip, a small office building, a warehouse, a self-storage facility, or an automotive property as an investment.
  • The business owner buying its own space. Your company will occupy the building, so SBA-backed options are worth comparing against conventional commercial financing.
  • The owner refinancing to fund what's next. You want to refinance commercial debt to improve your terms or pull equity for repairs, a new acquisition, or another project.

If you need speed first, for a value-add purchase or a short closing window, bridge and hard money financing is often step one. The long-term loan comes once the property is stabilized.

How Is a Commercial Request Reviewed?

Every commercial request is reviewed individually on the property's income and your profile as a borrower. Here's what that looks like.

The property's income

  • What it earns now. The rent roll and the T12 show actual rent collected and actual expenses, not projections.
  • How stable that income is. Occupancy, lease terms remaining, tenant mix, and whether a large share of the income depends on one tenant.
  • Whether it covers the debt. Lenders compare net operating income to the proposed loan payment, the commercial version of the debt service coverage ratio.
  • The building itself. Condition, location, use, and value, confirmed by an appraisal and, often, third-party reports.

Your profile

  • Experience. Owning or managing similar property counts. Newer investors can still be considered, usually with more conservative terms.
  • Credit and liquidity. Your credit history and the cash you'll have after closing.
  • Equity and structure. How much of your own money is in the deal and how title will be held.

That's why I don't publish leverage, credit, or loan-size figures for commercial. Those come back from the lender for your specific building.

What to Send to Get Started

Four documents get you a real first read on a commercial request.

Rent roll

Every unit or suite, the tenant, the rent, the lease start and end dates, and any deposits. If something is vacant or behind, note it.

T12 operating statement

The trailing twelve months of income and expenses. Flag one-time repairs and owner expenses so the real operating picture is clear.

Purchase contract or payoff

The signed purchase contract if you are buying, or a current payoff statement for the existing loan if you are refinancing.

Entity documents

Formation documents, operating agreement, and good-standing certificate for the LLC or corporation that holds or will hold title.

It also helps to send a short description of the property and your plan for it, a schedule of the real estate you own, current leases, and recent photos. The more complete the package, the more specific my first answer.

Send your rent roll and T12

What to Expect, Step by Step

  1. Initial conversation. Tell me about the property, the deal, and your timeline. I'll tell you straight whether it's worth packaging.
  2. Package review. You send the documents listed above. I review them and flag anything a lender will ask about.
  3. Lender review. I take the request to the lenders in my network that look at your property type. They say whether it fits and on what terms.
  4. Terms and decision. You compare the terms side by side, including the maturity date, amortization, and prepayment structure. Then you decide whether to move forward.
  5. Appraisal, reports, and closing. The appraisal and any third-party reports are ordered, conditions are cleared, and you close.

The Honest Trade-Offs

  • No instant answers. A commercial decision takes longer than a residential one, and the answer depends on documents, not a quick credit check.
  • More equity. Commercial loans generally ask for more of your own money than a residential loan. Riskier properties ask for more still.
  • Prepayment and maturity terms matter. Prepayment terms vary, and many commercial loans mature before they are paid off. Read both before you compare costs.
  • Third-party costs. Commercial appraisals and reports cost more than their residential versions, and some are ordered before you know the loan will close.
  • Fewer lenders per property type. Not every lender looks at every type of building. That's why I shop the request across a network.

Frequently Asked Questions

What types of commercial property can I finance?
I work with multifamily buildings with 5 or more units, mixed-use buildings, office, retail, warehouse, self-storage, and automotive properties. No property type is an automatic yes or no. The property's income and your profile as a borrower decide it. Residential rentals with 1 to 4 units are a different category. They're usually financed with a DSCR loan and follow published program guidelines.
How much do I need to put down on a commercial loan?
It depends on the property, its income, and your profile. Commercial loans generally require more equity than a residential loan. Higher-risk property types, vacant or transitional buildings, and newer investors usually need more equity in the deal. SBA-backed commercial programs (7(a)/504) can allow lower down payments in some cases when your business will occupy the building; ask me whether your scenario fits. You'll know the equity requirement before you commit to anything.
How are commercial loan rates determined?
Commercial rates depend on the property type, your financials, the loan-to-value ratio, the debt service coverage ratio (DSCR), market conditions, and the overall strength of the deal. It's not a credit score lookup like residential lending. I quote rates personally once I've seen the property, the rent roll, the operating history, and your plan for the building.
What is the difference between commercial and residential loans?
Commercial underwriting focuses on the property's cash flow and debt service coverage ratio (DSCR), not just your personal income and credit score. Terms, structures, and qualifying rules are different from residential lending. Commercial loans are business-purpose loans, and terms like amortization, maturity dates, and prepayment structures vary far more from one lender to the next.
Can I get a commercial loan for a mixed-use property?
Mixed-use is one of the property types I work with. These buildings combine residential and commercial space. Lenders evaluate them on the total income from all tenant types. Some residential investor programs exclude mixed-use entirely, so lender choice matters. I look first at how much of the building is commercial, what the leases say, and whether the commercial space is occupied.
What do I need to send you to get a commercial loan started?
Start with the four documents listed under What to Send to Get Started on this page, plus a short description of the property and your plan for it. With that package, I can tell you quickly whether the request is worth taking to lenders and what a lender will ask.
More questions (7)
What is a rent roll and a T12, and why do they matter so much?
A rent roll lists every unit or suite, who occupies it, the rent, and when each lease ends. A T12 is the property's income and expense statement for the most recent twelve months. Together they show what the building actually earns, and commercial lending is built on that number. If your T12 includes one-time repairs or owner expenses, flag them. If a lease is about to expire or a tenant is behind, say so up front. Surprises in underwriting slow a file down more than bad news shared early.
What happens after I send my package?
I review the property's income, the documents, and your experience. Then I pick which lenders in my network are worth approaching. The lender looks at the specific building and your profile and says whether it fits and on what terms. If it fits, the lender issues terms, you decide whether to move forward, and the appraisal and third-party reports are ordered. If it doesn't fit, I tell you why and what would change the answer.
How long does a commercial loan take to close?
Usually longer than a residential loan. Commercial files need an appraiser qualified for the property type, and often third-party reports like an environmental review or property condition report. Add leases, the rent roll, and operating statements. The fastest closings start with a complete package on day one. I don't promise a closing date until I've seen the property and the documents, because that's where commercial timelines slip.
Do commercial loans always have a balloon payment?
No, though many do. With a balloon, the remaining balance comes due on a set date even though the payments were figured over a longer schedule. That leaves you facing a refinance whether or not the market cooperates. On select programs, longer-term structures are available, including 30-year fixed, fully amortizing financing with no balloon payment. It's not universal, and short-term bridge loans work differently by design. Always confirm the maturity date on any term sheet before you compare offers.
Do I need an LLC, and will I have to sign a personal guarantee?
Many commercial borrowers hold title in an LLC or other entity. Lenders will want the entity's formation documents, operating agreement, and good-standing certificate. Holding title in an entity doesn't automatically make the loan non-recourse. Whether you sign a personal guarantee depends on the lender and the program, and I confirm it before you commit. If you haven't formed the entity yet, talk to me first so its ownership structure matches what the lender will accept.
Can I use an SBA loan to buy a building for my own business?
If your business will occupy the property, compare SBA-backed 7(a) and 504 programs against conventional commercial financing. They can allow a lower down payment in some cases. SBA loans are underwritten on the business as well as the building. Expect to provide business tax returns, financial statements, and details on how the business uses the space. Investment properties you lease to other tenants are a different request. Ask me whether your scenario fits.
What makes a commercial request more likely to work?
Steady occupancy, a clean T12 that matches the rent roll, leases with real time left on them, a realistic view of value, and experience owning or managing similar property. Equity in the deal and reserves after closing help in every case. None of these is a hard rule, but each one removes a question an underwriter would otherwise ask. If one is missing, explain it up front. Don't hope it goes unnoticed.

Related Loan Programs

Non-QM

Flexible qualifying: P&L, bank statements, assets, or 1099s.

Learn more

DSCR / Investor loans

Rentals and investment properties, qualified on the property.

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Hard money

Fast, asset-based funding for bridge, flip, or time-sensitive deals.

Learn more

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Commercial Real Estate Loans

SBA, bridge, and conventional commercial options explained.

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DSCR Loans Explained

How DSCR loans work for investment property financing.

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Bank Statement Loans Guide

Alternative income documentation for self-employed commercial borrowers.

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Have a Building in Mind?

Send me the rent roll and the T12, or book a call and tell me about the property. I'll tell you how a lender is likely to see it and what it will take to get a real answer.

Book a call

Or call (949) 990-6030

Rates and program availability may vary based on the state or region in which the financed property is located. This is not a credit decision, an offer, or a commitment to lend. Program restrictions apply.

Commercial requests are business-purpose loans reviewed individually; availability and terms depend on the property, the borrower, and the lender.

Randy Mathis NMLS# 1516760 | DRE# 02236644 | Lumin Lending Inc. NMLS# 2716106 | DRE# 02291443. Equal Housing Opportunity.