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February 2024 Commercial Real Estate Loans Maryland

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David Cohn

To consider commercial real estate investments in Maryland, you must closely monitor current loan rates. As of February 2024, various factors, including economic conditions, market trends, and lender policies, continue influencing commercial real estate loans Maryland. Let's explore the specifics of the loan rates and the options available for financing your commercial ventures.

 

Commercial Real Estate Loan Rates in February 2024

Maryland's commercial real estate loan rates varied based on businesses' financial profiles in February 2024, wherein commercial lenders' preferences greatly influence lender policies. Also, commercial real estate loans analyze your property financials to secure optimal financing solutions for your project. Therefore, these loans are mortgages secured by commercial properties to generate income for businesses, including retail centers.

 

Different Interest Rates for Different Loans

Note the significant commercial loan interest rates below-


1. Fannie Mae Loans

  • These government-sponsored enterprises offer competitive rates to many borrowers. 
  • The interest rates for Fannie Mae Small and Fannie Mae DUS loans are 5.64% to 7.74%, whereas their loan terms span 5 to 30 years.


2. CMBS Loans

  • Commercial mortgage-backed security loans provide non-recourse financing at fixed interest rates. 
  • These loans cater to properties' strength rather than credit scores. CMBS fixed interest rates range from 5.99% to 8.99%, and loan terms are 5 to 10 years.


3. HUD Multifamily Loans

  • Offered by the U.S. Department of Housing and Urban Development, these loans attract financing terms for multifamily properties. 
  • HUD 223(f) loans feature interest rates from 4.74% to 7.24%, with loan terms of up to 35 years.


4. Bridge Loans

  • These short-term financing solutions bridge the gap between property acquisition and long-term financing. 
  • They offer interest rates ranging from 6.32% to 15.32% and terms spanning 1 to 2 years.


5. SBA Loans

  • Including SBA 7(a) and SBA 504 loans, these Small Business Administration loans offer versatile financing options for small businesses. 
  • Their interest rates are, for example, SBA 7(a) loans offer 9.50% to 11.25%, whereas SBA 504 loans range around 8.50% ± 1%.

 

Conclusion

Ultimately, given the current interest rates of commercial real estate loans in Maryland, investors and developers must evaluate financing for their projects properly. After considering your business's loan terms and complete repayment structure, you must decide which financing option best aligns with your financial capabilities.

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