Credit Requirements for Commercial Real Estate: What You Need to Know

When you're buying commercial real estate, property used for business purposes like offices, retail spaces, or warehouses. Also known as CRE, it's not like buying a home—lenders care about different things. Your personal credit score matters, but it’s just one piece. What really decides if you get approved is how the property itself makes money, what kind of down payment you can put down, and whether your business has a solid track record.

Most lenders want a credit score, a three-digit number that shows how reliably you pay back debt. Also known as FICO score, it's a key factor in loan approval of at least 680, but 700 or higher gives you way better rates. If you're a new business, they’ll look harder at your personal finances. If you’ve run a business for five years, they’ll focus on your cash flow, tax returns, and tenant leases. You can’t just rely on a good score—you need to show the property can cover its own loan payments. That’s called the debt service coverage ratio, and most banks want it to be 1.25 or higher. That means the property’s income is 25% more than what you owe each month.

Down payments are usually bigger too. For residential homes, 3% to 20% might work. For commercial, expect 20% to 30% upfront. Some lenders will go lower if you have strong equity in other properties or a proven history of managing rentals. They’ll also check your debt-to-income ratio, your business’s operating expenses, and even the location’s vacancy rates. It’s not just about you—it’s about the building, the tenants, and the market. If you’re buying a strip mall in a declining area, even perfect credit won’t save you.

What you’ll find below are real examples of how people got approved, what trips them up, and how to fix common mistakes. You’ll see how one investor improved his credit and landed a loan on a warehouse by restructuring his business accounts. Another got rejected twice before she figured out how to present her lease agreements the right way. These aren’t theory pieces—they’re stories from people who’ve been there. Whether you’re looking at a small office building or a multi-tenant retail center, the rules are the same: show cash flow, prove stability, and don’t guess at the numbers.