Commercial real estate refinance loans
Refinance commercial real estate to pull out equity, pay off a seller note or short-term loan, or trade a variable rate for a fixed one. We match your goal to the right lending partner.
The pre-qualification form takes about a minute.
Run your numbers in the DSCR calculatorWhy owners refinance
Refinancing replaces your current commercial loan with a new one. Owners and investors usually do it for one of four reasons:
- Pull cash out. Tap the equity you’ve built for new investments, business expansion or paying down other debt.
- Pay off a seller note. Retire a seller-financed note, often before a balloon payment comes due.
- Exit a short-term loan. Replace a bridge or hard money loan with longer-term financing once the property is stable. (Hard money loans placed by Standout are offered in Georgia only.)
- Move from a variable rate to a fixed rate. Trade a variable-rate SBA loan for a fixed-rate conventional loan, so your payment stops moving with Prime.
We’re a brokerage, not a lender. We look at what you want the refinance to do, then place the loan with the lending partner whose program fits. Refinance loans start at $250,000, the minimum for all our commercial real estate programs.
How commercial real estate refinancing works
A commercial loan refinance pays off your current loan with a new one secured by the same property. The new lender sizes the loan on three things:
- Value. An appraisal sets what the property is worth. The loan-to-value (LTV) limit caps the new loan as a share of that value.
- Income. The property’s net operating income has to cover the new payment with room to spare. Lenders measure this with the debt service coverage ratio (DSCR).
- You. Your credit and, on a full-documentation loan, your tax returns and financial statements.
The smallest of those limits sets your loan amount. At closing, the new loan pays off the old one, along with any prepayment penalty, and any cash left over goes to you.
Commercial refinance requirements at a glance
| Conventional refinance | No doc refinance | |
|---|---|---|
| Loan amount | Typically $250,000 to $4 million | Typically $250,000 to $4 million |
| Credit score | 650+ | 650+ (not applicable to foreign investors) |
| Income documents | Full tax returns and financials | Not required |
| Loan-to-value | Varies by property type, up to 85% on some | Generally 75%, up to 85% in some scenarios |
| Typical turnaround | 30 to 45 days | Approval often in 24 to 48 hours; closing in a few weeks |
| Cost | Usually the lowest | Typically higher than conventional |
Two refinance programs
We place both standard refinances (also called rate-and-term) and cash-out refinances through two programs.
Conventional commercial loan
For borrowers with solid credit who can fully document income and assets. It’s usually the lowest-cost option. It’s also the usual route for moving off a variable-rate SBA loan, since conventional loans can carry a fixed rate.
- Loan amount: typically $250,000 to $4 million
- Credit score: 650+
- Term: typically 5 to 20 years, sometimes with a balloon payment
- Documentation: full income and asset verification
- Typical turnaround: 30 to 45 days
See conventional commercial loans for full details.
No doc (no income verification) loan
For borrowers who can’t, or would rather not, document income the traditional way. Self-employed owners and foreign investors often fit here. Approval leans on credit, assets and the property’s value rather than tax returns.
- Loan amount: typically $250,000 to $4 million
- Credit score: 650+ (not applicable to foreign investors)
- Loan-to-value: generally 75%, up to 85% in some scenarios
- Pricing: typically higher than a conventional loan
- Prepayment penalty: common on these loans
Loan-to-value (LTV) is the loan amount as a share of the property’s appraised value. It caps how much cash you can take out. See no doc commercial loans for full details.
Common refinance situations
Cash-out on a property you own
Your property has gained value, or you’ve paid down the loan. A cash-out refinance replaces your current loan with a larger one, and you keep the difference. The amount available depends on the appraisal and the program’s LTV limit.
Paying off a seller note
Seller financing often helps close a purchase, but the note may be short-term or end in a balloon. Refinancing retires the note and puts the property on a longer, more predictable loan.
Replacing a hard money loan
Hard money is short-term, asset-based financing. It’s useful for a fast purchase or a renovation, but it’s expensive to hold. Once the work is done or the property is leased, a refinance can move you to longer-term debt. Hard money loans placed by Standout are offered in Georgia only.
Moving a variable-rate SBA loan to a fixed rate
SBA 7(a) rates are variable and tied to Prime, so your payment moves when Prime does. If your credit and financials are strong, a conventional loan can replace it with a fixed rate. You trade the SBA structure for a payment that holds steady.
When refinancing may not make sense
Refinancing has costs, so it isn’t always the right move. Look closely if:
- Your current loan has a large prepayment penalty
- The new loan’s fees outweigh what you’d save or the cash you’d gain
- The property’s income doesn’t cover the new payment. Lenders typically want a debt service coverage ratio of at least 1.20 to 1.25 on conventional loans. Check yours with our DSCR calculator.
Your loan expert can walk through the numbers with you before you commit to anything.
What you’ll need
Requirements depend on the program. For a conventional refinance, expect:
- Three years of personal and business tax returns
- Personal financial statement (we provide the form)
- Year-to-date income statement and balance sheet
- Last three consecutive months of bank statements
- Your most recent loan statement
- Articles of incorporation for the borrowing entity
- IRS Form 4506 (we provide it)
For a no doc refinance, the list is shorter:
- Property address and loan purpose
- Copy of Social Security card and ID
- Loan application
- Articles of incorporation for the borrowing entity
- Last three consecutive months of bank statements
- Your estimate of your credit score (credit is pulled later)
Typical costs. Conventional loans typically carry a $1,500 to $2,500 refundable underwriting fee and 1% to 2% in points at closing. No doc loans typically carry about 2% in points at closing, plus the appraisal fee if you move forward.
How it works
- Apply online. A short, 1-minute form tells us about your property, your current loan and your goal.
- Talk to your loan expert. A Standout loan expert is assigned to your file and guides you through the process.
- Choose your loan. Your loan expert brings you the best available options from our lending partners.
All terms, fees and requirements on this page are typical figures. They are subject to credit approval and can change without notice.
Common questions
How long does a commercial refinance take?
A conventional commercial refinance typically takes 30 to 45 days from a complete application. The appraisal and underwriting take most of that time, so having your documents ready helps.
What do lenders look at when you refinance commercial real estate?
Mainly the property's value, its income against the new payment, your credit and, on a full-doc loan, your financials. Conventional lenders typically want a debt service coverage ratio of at least 1.20 to 1.25.
What is a cash-out refinance?
You replace your current loan with a larger one and keep the difference in cash. How much you can take out depends on the property's value and the program's loan-to-value limit.
Can I refinance a variable-rate SBA loan into a fixed rate?
Often, yes. If you have strong credit and full financials, a conventional commercial loan can replace an SBA 7(a) loan, and conventional loans can carry a fixed rate.
Can I pay off a seller-financed note?
Yes. Paying off a seller note is a common reason to refinance, especially when a balloon payment is coming due.
What if I can't document my income?
The no doc program qualifies you mainly on credit, assets and the property's value rather than tax returns. Pricing is typically higher than a conventional loan.
What does refinancing cost?
It depends on the program. Conventional loans typically carry a $1,500 to $2,500 refundable underwriting fee and 1% to 2% in points. No doc loans typically carry about 2% in points plus the appraisal.
Other options to compare
All loan programs- Loan program Conventional commercial loans Bank and credit-union financing. For strong credit and full documentation, usually the lowest-cost path. Banks and credit unions
- Loan program No doc commercial loans No tax returns or pay stubs. Approval rests on your credit, your assets and the property. No tax returns needed
- Loan program SBA 7(a) loans for commercial real estate Buy, build or improve the building your business operates from, with a lower down payment. Repayment up to 25 years
Ready to take the next step?
Apply in about a minute. Your loan expert will guide you from there.