Commercial Loan Percent Down: What You Really Need to Put Down

When you're buying commercial loan percent down, the upfront cash required to secure a loan for office space, retail buildings, or industrial properties. Also known as commercial down payment, it's not just a number—it's the gatekeeper to your investment. Unlike residential loans, where 3% to 20% is common, commercial loans demand much more. Most lenders require 20% to 30% down, and for riskier deals or first-time buyers, it can jump to 40% or higher. This isn't arbitrary—it's about risk. The property’s income, your credit, and your cash reserves all play a role in how much you need to put up front.

The commercial property loan, a financing tool used to purchase income-generating real estate like warehouses, shopping centers, or office buildings doesn’t just look at your personal credit score—it looks at the building’s ability to pay for itself. Lenders use metrics like debt service coverage ratio (DSCR) to see if rent or lease income can cover the monthly payment. If the numbers don’t add up, they’ll ask for more cash down. That’s why two buyers with identical credit scores can get totally different down payment offers: one is buying a fully leased medical office, the other is buying a vacant retail strip. The building’s income matters more than your salary.

commercial financing, the process of securing capital to acquire or refinance commercial real estate isn’t one-size-fits-all. SBA loans might let you put down as low as 10%, but they come with strict rules and longer approvals. Traditional banks stick to 25%–30%. Private lenders? They’ll go lower if you have strong collateral, but their rates are higher. And don’t forget closing costs, inspections, and reserves—those can add another 5% to 10% on top of your down payment. You need cash for the down payment and cash to cover six months of expenses if tenants go empty. That’s not optional—it’s standard.

What you’ll find in the posts below aren’t generic advice or fluff. These are real cases: how a buyer in Texas got a 20% down deal on a leased medical building, why a landlord in Virginia had to put down 35% on a vacant warehouse, and what happened when someone tried to put down only 10% and got denied. You’ll see how credit scores, property type, and location change the numbers. No theory. Just what lenders actually ask for—and how to get approved without overpaying.