Where residential lending ends and commercial begins, what each asset class costs, and the mixed-use middle ground most investors never hear about — written plainly, by a brokerage that places commercial deals to five million dollars.
Almost everything about commercial financing turns on one boundary, and most people get it wrong.
| Property | Treated as | Why it matters |
|---|---|---|
| One to four units | Residential | Single family through fourplex. Priced lowest, widest choice of lenders, and what most private money programmes are built for. |
| Five or more apartments | Multifamily / commercial | Zoned commercially. Different lenders, different underwriting, higher rates. |
| Any commercial component | Commercial | A shop downstairs and three flats above is mixed use, financed as commercial even though it has fewer than five units. |
Through our lending partners, the commercial programme covers most income-producing property types rather than a narrow slice of them.
Loan amounts run to five million dollars at up to seventy-five percent of value. Because the underwriting is on the asset rather than on tax returns, the programme suits self-employed investors and small business owners who document poorly on paper but hold real property.
Every loan is non-owner-occupied and business purpose. Not a commitment to lend — all offers of credit are subject to approval, and terms vary by property, market and borrower.
Higher than residential, because absorption periods are longer and income-producing property is more complex to underwrite.
| Asset | 2026 rate | Terms |
|---|---|---|
| Single family | 8%–12% | The cheapest hard money there is. |
| Small multifamily | Slightly above | Rising with unit count. |
| Office, retail, industrial | 10%–14% | 2 to 4 points. Leverage capped at 60% to 70%. |
| Land and ground-up | 11%–15% | Highest, because completion risk sits on top of everything else. |
Closing runs five to fourteen days against sixty to ninety for a bank — and on a competitive commercial acquisition that difference decides who gets the property.
Worth understanding even if you never do one, because it is the shape most commercial bridge deals take.
An investor buys an underperforming apartment building — say fifty units at sixty-five percent occupancy. A bank will not touch it in that condition. Hard money funds the acquisition and the renovation. The investor refurbishes units and common areas, raises rents to market, and pushes occupancy above ninety percent. Once it is stabilised and performing, it refinances into conventional or agency debt at a far lower rate.
The hard money made the whole thing possible, and it was only ever meant to be held for eighteen months. That is the pattern: expensive money buying the time to make a property bankable.
Office and retail are harder than they look. Their value depends on lease structures and tenant quality rather than on the building, so a lender who mostly funds residential flips may badly misjudge one. If that is your asset, find a lender who does that asset.
This is the part worth knowing, because it is under-served and it sits closer to what we can help with.
A growing number of specialist lenders now write mixed-use DSCR loans where the building is at least fifty-one percent residential — flats above, a shop or an office below. They qualify on the rent from both the commercial and residential tenants rather than on your personal income.
If you have found a building with stable commercial tenants and a residential majority, that is a genuine niche with less competition than pure residential — and financing that most investors do not know exists.
Business-purpose lending is largely unregulated at federal level. State-level oversight varies enormously — some states require hard money lenders to hold mortgage lending licences, others have minimal supervision.
Practically, that means the burden of checking sits with you. Verify licensing where the property is, ask for references from past deals in that asset class, and read the commitment before signing it. A lender who funds residential flips beautifully may have no business underwriting a two-hundred-unit repositioning, and the wrong choice costs weeks, non-refundable deposits, and sometimes the deal.
Yes. Loan amounts to five million dollars, up to seventy-five percent of value, nationwide, covering apartment complexes, multi-family, mixed use, self-storage, office, retail and industrial. Underwritten on the property rather than your personal income, with no minimum credit rating and first-time commercial investors welcome.
Five or more apartment units, or any commercial component at all. A shop downstairs with three flats above is mixed use and is financed commercially, even though it has fewer than five units.
Office, retail and industrial typically run 10% to 14% with two to four points and leverage capped at 60% to 70%. Land and ground-up construction reach 11% to 15%. Single family remains the cheapest at 8% to 12%.
Five to fourteen days, against sixty to ninety for a bank. On a competitive acquisition that gap frequently decides who ends up owning the property.
Increasingly yes, if the building is at least 51% residential. Specialist lenders write these at 65% to 75% leverage with a 1.15 to 1.25 coverage floor and rates around 8.25% to 9.75% — well below true commercial pricing.
Business-purpose lending is largely unregulated federally, and state oversight varies widely. Some states require lenders to hold a mortgage lending licence; others barely supervise it. Verify licensing where the property sits.
Because the lender's remedy is limited to the property. All else equal, non-recourse prices slightly above full recourse — you are paying for what the lender gives up.
Answer these and we will tell you whether it is fundable, on what terms, and how fast it could close. Investment property only — we do not lend on a home you will live in.
We will run the numbers and come back to you. If it is time-sensitive, call 903-636-7511.
Dominion Hard Money arranges private and asset-based real estate financing for business purposes only. Not a commitment to lend. All loans subject to underwriting, property review, and approval. Terms vary by property, borrower experience, and exit strategy.