1. Major Commercial Real Estate Loan Types
Commercial financing has become more specialized than ever in 2026. Your property type and business goals
determine which loan is best.
Conventional Mortgages
- Rates: 4.5% - 7.5% (Feb 2026 Market).
- Terms: 5 to 20 years with 25-year amortization.
- Ideal For: Stabilized properties (Retail, Office, Industrial) with strong
rental history.
SBA 504 & 7(a) Loans
- Advantage: Only 10% down payment (SBA 504).
- Requirement: Owner-occupancy mandatory (51% occupancy).
- Update: Under OBBBA Act, green manufacturing fees are now 100% waived.
Bridge & Hard Money
- Speed: Funding possible in 7 to 14 days.
- Rates: 8% - 15% (Short-term focus).
- Use Case: Perfect for distressed assets or fast acquisitions.
2. Comparative Market Matrix (2026)
| Loan Type |
Current Rates |
Down Payment |
Speed to Close |
| Conventional |
4.5% - 7.5% |
20-25% |
45-60 Days |
| SBA 504 |
5.5% - 6.5% |
10% |
60-90 Days |
| Bridge Loans |
7.0% - 12.0% |
25-35% |
7-30 Days |
| CMBS (Conduit) |
5.5% - 7.5% |
25-30% |
45-60 Days |
| Agency (Multifamily) |
4.5% - 6.5% |
15-20% |
45-60 Days |
3. Short-Term Rental Tax Blueprint
The tax structure for short-term rentals (STRs) has changed radically in 2026. The OBBBA Act has set new
rules.
$6001099-K Threshold
100%Bonus Depr.
(OBBBA)
20%Permanent QBI
Break
The Augusta Rule (14-Day)
If you rent for 14 days or less in a year, that income is 100% exempt from IRS.
This is excellent for hosts who rent their home during major events.
The STR Loophole
If average guest stay is < 7 days and you materially participate in property management, your
rental loss becomes non-passive, which can offset your W-2 income.
Documentation Tip: The IRS now uses "Digital Audits." Keeping digital records of
invoices and property-related travel logs is now essential for survival.
4. Matching Loans to Strategy
Buy & Hold: Long-term fixed-rate conventional or agency loans are best.
Value-Add: Use bridge financing, then refinance into a permanent loan after
stabilization.
Owner-Occupant: Prioritize SBA 504 to conserve capital.