Who this page is for
Owner-occupied commercial buildings
Most Pennsylvania owners who look at a commercial mortgage are trying to stop renting the space they work in, or to put better terms on a building they already own. That might be a shop, an office, a warehouse, a garage, or a light industrial space the business runs from every day. When the business is the main occupant, lenders can look at the property and the operating company together.
Mixed-use property in Pennsylvania
Storefronts with apartments above are common across Pennsylvania, from Main Streets in Bucks County to older downtowns in Central PA. If your business operates from part of a mixed-use building, it may fit. Lenders look closely at how the property is used: which part the business occupies, how the rest is leased, and what the rent roll looks like. Bring the leases and the rent roll with the application. Whether a specific building qualifies depends on the lender reviewing it.
When this is the wrong product
Commercial real estate financing is tied to a property. It is not built for payroll, inventory, a slow month, or a piece of equipment. For those, look at working capital or equipment financing. This page is also not for a home mortgage or any consumer purpose. Everything here is business use only.
What a commercial mortgage is
A commercial mortgage is financing secured by business property instead of a home. The property carries the request, so lenders review the building as closely as they review the business. Terms, documents, and timelines usually look different from a residential mortgage, and each lender sets its own approach. For the full product overview, see commercial real estate financing.
Ways Pennsylvania owners use commercial real estate financing
Purchase
You are buying a building the business will operate from. A purchase usually runs on a longer schedule and ends with a scheduled payoff. Lenders will want the address, the price, the purchase agreement if you have one, and a clear picture of how the business uses the space.
Refinance
You already own a commercial property and want to replace the current financing. Owners refinance to change the payment schedule, move off a loan that is coming due, or put the property on terms that fit the business today. Searchers often ask about refinance rates in PA. We do not publish rates, because the lender sets the rate on each option based on the property and the file. You see the actual terms on each option before you decide.
Bridge
A bridge is short-term financing that covers a gap and ends with a stated exit: a sale, a refinance, or a lease that lands. If you can describe how the bridge gets paid off and roughly when, it may be the right shape. If there is no exit, it is the wrong product.
| Purchase | Bridge | |
|---|---|---|
| Purpose | Buy and hold the property | Cover a short timing gap |
| Timeline | Longer | Short |
| Ends with | A scheduled payoff | A sale or refinance |
Commercial mortgage vs SBA vs term loan
These three get compared a lot, and they solve different problems.
| Commercial real estate | SBA loan | Term loan | |
|---|---|---|---|
| What backs it | The property | Partly guaranteed by the U.S. Small Business Administration | The business and its cash flow |
| Best for | Buying, refinancing, or bridging business property | Owners who can handle more documents and a slower clock | One amount for a defined business need |
| Paperwork | Property and business documents | Usually the most | Usually less than SBA |
Some SBA programs can be used for real estate. If you are weighing speed against paperwork, read SBA vs short-term financing. You can also see SBA and term loan options on their own pages. Every lender sets its own rates, amounts, and requirements, and those show up on the options you receive.
What lenders look at on a property file
The property
Lenders start with the building itself: the address, how it is used, the purchase price or current value, and its condition. An appraisal may be required later in the process. You do not need one to start.
The business
Lenders also want to understand the company that occupies or owns the property. That means how the business runs, how long it has been operating, and recent business bank statements. A strong building does not replace a clear picture of the business, and the reverse is true too.
Leases and rent roll
If any part of the property is leased to tenants, including the upper floors of a mixed-use building, lenders will ask for the leases and the rent roll. These show who pays what and for how long.
Ability to carry the payment
Many lenders measure whether the property and the business bring in enough to cover the new payment, sometimes called a debt service coverage ratio. Each lender sets its own threshold, so we do not quote one here.
What we need to start
You can start with the basics and send the rest as the file moves:
- Property address
- Whether this is a purchase, refinance, or bridge
- Purchase price or current value
- The exit, if it is a bridge
- Rent roll and leases, if the property is tenanted
- Recent business bank statements
See what to have ready for the full list.
What happens next
You submit one application. Keystone packages the file and sends it to lenders that review this kind of property. When options exist, they appear in your account. Sometimes there is more than one, and sometimes there are none. You compare your options there, choose one if it fits, and review that lender's agreement before you sign. The lender is named on the option and in the agreement.
Property files take longer than cash-flow files because more parties review them. After we look at what you sent, we give you an honest timeline. See how it works for the full process, and what to check before you sign.
Why a Pennsylvania page
Keystone Business Lenders is based in Pennsylvania and works with owners across the state, from the Philadelphia region and Bucks County to Central PA and the Pittsburgh region. Pennsylvania has a lot of older commercial and mixed-use buildings, and owners here ask the same questions: does my building count, can I refinance what I have, and what do lenders want to see. This page answers those questions for Pennsylvania owners. Learn more about us.