Which properties qualify, how commercial loan terms work, and what to watch for.
A commercial mortgage is a loan secured by an income-producing or business property. It works like a home loan in some ways, but the terms, the paperwork, and the fine print can be very different.
Properties with one to four units are usually financed as residential investment loans instead.
This is the most important thing to understand. The amortization is how long the payments are calculated over. The term is how long until the loan is due. Many bank commercial loans have a short term with a longer amortization, for example a payment calculated over 25 years but the full balance due in 5 or 10. That leftover balance is a balloon payment, and you’ll need to refinance or pay it off when it comes due.
CCIG’s commercial loans are 30-year and fully amortized, with no balloon. The loan is paid off over its full term, so you’re never forced to refinance under pressure.
| Term | What it means | At CCIG |
|---|---|---|
| Loan-to-value (LTV) | Loan amount divided by property value | Up to 75% |
| Loan amount | The range a lender will lend | $75,000 – $5,000,000 |
| Rate options | How the interest rate behaves | Fixed, adjustable, or interest-only |
| Debt service ratio | Whether income covers the payment | Not required |
| Owner-occupied | Can your business use the building? | Yes |
If your business operates in the building, it’s owner-occupied. If you lease it to tenants, it’s an investment. CCIG finances both on commercial, mixed-use, and multi-family properties.
Real examples: A first-time investor bought a commercial office building in Stoneham, MA, and CCIG closed the purchase in four weeks. A restaurant owner in Lawrence, MA pulled cash out of his building and lowered his rate in the same loan.
Tell us about the property and a CCIG loan specialist will walk you through your options.
