Exchange Bank Commercial Real Estate Loans — Owner-Occupied, Investment, Construction & Bridge
Exchange Bank finances commercial property across every stage of the acquisition and development cycle. From purchasing an owner-occupied office to funding a ground-up construction project, our commercial real estate team provides underwriting decisions locally — which means faster approvals and a relationship you can build on. Call (800) 397-3962 to discuss your property financing needs with a CRE banker.
Exchange Bank commercial real estate programs cover four property scenarios: owner-occupied (up to 80% LTV, 25-year amortization), investment property (up to 75% LTV), construction (up to 80% of appraised completed value), and bridge loans (up to 70% LTV, 6–24 months). Minimum loan amounts start at $250,000. Fixed and variable rate options are available on permanent financing. Local appraisal and underwriting keeps timelines predictable. Contact Exchange Bank at (800) 397-3962.
Commercial Real Estate Products
Financing Built for Every Property Scenario
Each CRE loan product addresses a different ownership structure and timeline. The right product depends on how the property is used, how long you plan to hold it, and the stage of construction or renovation.
Purchase or Refinance the Property Your Business Operates From
An owner-occupied commercial real estate loan is designed for businesses that will occupy at least 51% of the property's usable square footage. This classification is significant: because the occupying business's operational revenue supports repayment, lenders typically approve higher loan-to-value ratios and more favorable rates than on pure investment properties.
Exchange Bank owner-occupied CRE loans support office buildings, retail storefronts, warehouses, medical and dental practices, restaurants, and mixed-use properties where the owner's business is the primary tenant. Amortization up to 25 years keeps monthly payments manageable even on larger loan balances. Fixed-rate options provide certainty; adjustable-rate structures offer lower initial payments for borrowers who plan to sell or refinance within a known window.
- Maximum LTV: 80%
- Amortization: up to 25 years
- Rate types: fixed or adjustable
- Minimum loan: $250,000
- Eligible: office, retail, warehouse, medical, mixed-use
Acquire Income-Producing Commercial Property
Investment property CRE loans finance commercial real estate where third-party tenants generate the rental income that supports debt service. Underwriting focuses heavily on the property's net operating income, lease terms, tenant credit quality, and market vacancy rates. A strong rent roll with long-term leases from creditworthy tenants positions the loan for the best possible terms.
Exchange Bank lends on stabilized multifamily buildings, retail strip centers, light industrial properties, and office buildings. The bank's local market knowledge means underwriters understand regional cap rates and absorption trends — context that generic national lenders often lack. Loan-to-value up to 75% with amortization up to 25 years.
- Maximum LTV: 75%
- Amortization: up to 25 years
- Underwriting based on NOI and DSCR (minimum 1.25)
- Eligible: multifamily, retail, industrial, office
- Minimum loan: $500,000
Ground-Up and Major Renovation Financing
Construction loans from Exchange Bank are short-term facilities that fund building costs in draws as work is completed. Rather than disbursing the full loan at closing, the bank releases funds against a verified construction budget each time a draw milestone is reached. This structure protects both the borrower and the bank by ensuring loan proceeds track actual construction progress.
Exchange Bank construction loans are available for ground-up commercial development and major rehabilitations of existing structures. Upon completion, the loan converts to permanent financing — eliminating the need to find a separate take-out lender and reducing transaction costs. The construction-to-permanent structure provides a single appraisal, one set of closing costs, and a seamless transition to long-term repayment.
- Maximum LTV: 80% of appraised completed value
- Draws released against verified progress
- Construction period: typically 12 – 24 months
- Converts to permanent financing at completion
- Minimum loan: $500,000
Short-Term Capital to Close Timing Gaps
Bridge loans provide short-term financing when a permanent solution is not yet in place — whether because the property needs stabilization, the borrower is in a 1031 exchange, or permanent financing approval is still pending. Exchange Bank bridge loans carry terms of 6 to 24 months and can close faster than permanent CRE loans because underwriting focuses on exit strategy and property value rather than long-term cash flow projections.
Common bridge scenarios include acquiring a property before selling a current holding, repositioning a vacant or underperforming commercial building before seeking permanent debt, and timing a 1031 exchange to avoid capital gains tax obligations. Bridge loans are typically interest-only during the term, keeping monthly payments low while the exit strategy is executed.
- Maximum LTV: 70%
- Term: 6 – 24 months
- Interest-only payments during bridge term
- Faster closing than permanent CRE
- Supports 1031 exchanges, repositioning, and acquisitions
Program Comparison
Exchange Bank CRE Loan Programs at a Glance
Compare key parameters across all four Exchange Bank commercial real estate loan structures. All terms subject to credit approval and market conditions.
| Loan Type | Max LTV | Amortization | Rate Type | Min Loan Amount | Typical Close Time |
|---|---|---|---|---|---|
| Owner-Occupied | 80% | Up to 25 years | Fixed or Adjustable | $250,000 | 45 – 60 days |
| Investment Property | 75% | Up to 25 years | Fixed or Adjustable | $500,000 | 45 – 75 days |
| Construction | 80% of completed value | Up to 25 years (permanent) | Variable during construction; fixed or adjustable permanent | $500,000 | 60 – 90 days |
| Bridge Loan | 70% | Interest-only (6 – 24 months) | Variable | $500,000 | 21 – 35 days |
LTV and rate information is indicative and subject to creditworthiness, property type, and market conditions. Contact Exchange Bank for a customized term sheet.
What Underwriters Evaluate
How Exchange Bank Underwrites Commercial Real Estate Loans
Understanding what factors drive the credit decision helps borrowers prepare a stronger application and reach closing faster.
Debt-Service Coverage Ratio
Exchange Bank requires a minimum DSCR of 1.25 on stabilized properties — meaning net operating income must exceed annual debt service by at least 25%. Construction loans are underwritten on projected stabilized NOI using conservative market vacancy assumptions.
Appraisal and Valuation
An independent MAI-certified appraisal is required for all Exchange Bank CRE loans. Standard commercial appraisals take 3 to 6 weeks. The bank orders the appraisal at application to minimize delays. Appraisal cost is borne by the borrower and credited to closing costs at funding.
Borrower Financial Strength
Personal and business tax returns for three years, personal financial statements, and a business plan or rent roll are standard requirements. For investment properties, lease agreements and tenant financial statements support underwriting. Exchange Bank considers global cash flow — all income and debt obligations across the borrower's portfolio.
For consumer real estate financing resources and disclosures, visit consumerfinance.gov.
FAQ
Commercial Real Estate Loan Questions — Exchange Bank Answers
Answers to the questions Exchange Bank commercial borrowers ask most often before and during the application process.
What is the difference between owner-occupied and investment CRE loans?
An owner-occupied CRE loan finances a property where the borrowing business occupies at least 51% of usable space. The business's operating revenue supports repayment, which generally means better rates and higher LTVs (up to 80%). An investment property loan finances a property where rental income from third-party tenants is the repayment source, with underwriting centered on NOI, DSCR, and lease quality. LTV on investment properties is typically capped at 75%. See the business loans page for general commercial lending options.
What LTV does Exchange Bank allow on commercial real estate?
Exchange Bank lends up to 80% LTV on owner-occupied properties, 75% on investment properties, and 80% of appraised completed value on construction loans. Bridge loans are generally capped at 70% LTV. Higher LTVs may be available on owner-occupied properties through SBA 504 financing, which allows down payments as low as 10%. See the SBA loans page for details on 504 program structure.
Does Exchange Bank charge prepayment penalties on CRE loans?
Prepayment terms vary by loan product and rate structure. Fixed-rate CRE loans often carry a step-down prepayment schedule — for example, 3% in year one, 2% in year two, 1% in year three, then free thereafter. Variable-rate loans are typically prepayable without penalty after the initial rate period. The specific prepayment provision is disclosed in your loan commitment letter and closing documents before you are obligated.
How long does a commercial real estate appraisal take?
Commercial real estate appraisals typically take 3 to 6 weeks from the order date, depending on property type, size, and local appraiser availability. Exchange Bank orders the appraisal at or shortly after application to avoid delays at closing. For construction loans, the appraisal estimates the completed value based on reviewed plans and comparable sales, which may add a week to the timeline. Budget 6 to 8 weeks from application to appraisal delivery on complex properties.
What is a balloon payment on a commercial real estate loan?
A balloon payment is the remaining principal balance due at the end of a loan term that is shorter than the amortization period. A common CRE structure is a 10-year loan term on a 25-year amortization — you make monthly payments as if the loan runs 25 years, but after 10 years the remaining balance is due in full. At that point most borrowers refinance. Balloon structures give lenders the ability to reprice every 5 to 10 years while providing borrowers lower payments during the loan term. Exchange Bank discloses the balloon amount and date in your loan commitment letter.
Ready to Finance Your Commercial Property with Exchange Bank?
Local underwriting means faster decisions and a banker who understands your market. Whether you are purchasing, refinancing, or building, Exchange Bank has a CRE program designed for your transaction. FDIC insured. NMLS #480228.
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