How to Finance a Commercial Real Estate Purchase in 2025: Your Complete Guide
Financing a commercial real estate purchase in 2025 can unlock significant investment opportunities, whether you're acquiring office spaces, retail centers, or industrial properties. With the right approach, you can secure a commercial mortgage that aligns with your financial goals. This guide, brought to you by Frontier Funding, outlines the essential steps to finance your commercial property purchase effectively.
Understanding Commercial Mortgages
A commercial mortgage is a loan specifically designed for purchasing income-generating properties, such as warehouses, apartment complexes, or shopping centers. Unlike residential mortgages, commercial loans focus on the property’s revenue potential and the borrower’s business financials. In 2025, Frontier Funding offers tailored solutions to meet the needs of investors and business owners seeking flexible financing.
Step 1: Assess Your Financial Readiness
Before applying for a commercial mortgage, evaluate your financial health. Lenders typically require:
Credit Score: A score of 650 or higher improves approval odds.
Debt-Service Coverage Ratio (DSCR): Ensure the property’s income covers loan payments (ideal DSCR > 1.25).
Down Payment: Expect to pay at least 15% of the property’s value upfront.
Frontier Funding specializes in guiding clients through this process, offering personalized advice to strengthen your application.
Step 2: Choose the Right Commercial Mortgage Type
In 2025, several commercial mortgage options are available:
30 years fixed
ARMs
Bridge
Frontier’s experts can match you with the best loan for your investment strategy.
Step 3: Gather Essential Documentation
Lenders require detailed documentation to assess your loan eligibility:
2 months bank statements
LLC documentation
Government ID
Frontier Funding streamlines this process, ensuring your application is complete and competitive.
Step 4: Apply and get issued terms
Focus on:
Interest Rates: Fixed or variable rates impact long-term costs.
Loan Terms: Commercial mortgages typically range from 5–20 years.
Fees: Origination or prepayment penalties.
Frontier Funding Group’s fast approval process and customized terms make securing a commercial mortgage seamless.
Why Choose Frontier Funding Group?
With rising demand for commercial properties in 2025, partnering with an experienced firm is crucial. Frontier Funding offers:
Flexible financing for various property types
Competitive rates and quick closings
Expert support for first-time and seasoned investors
Get Started Today
Financing a commercial real estate purchase in 2025 requires careful planning and the right lender. Contact Frontier Funding to explore your options and secure a commercial mortgage tailored to your needs. Visit our “contact us” page for more details or request a free quote today!
About the Author
Jake Yuskaitis is a former US Marine and the Co-founder of Frontier Funding.
Jake Yuskaitis, a former US Marine Corps Infantryman, transitioned into the financial services industry as a loan officer, where he quickly rose to lead a team of professionals. His top priority has always been to serve borrowers with dedication, prioritizing their needs and delivering exceptional, client-focused service.
About Frontier Funding
Founded by two seasoned professionals with extensive experience in real estate financing, Frontier Funding understands the unique challenges and opportunities in the private money lending space. We have built a culture that reflects our core values in all our services.
At Frontier Funding, our mission is to provide real estate investors with a reliable solution for all their lending needs. With a wide range of funding options, we ensure that every loan is met with the right solution—giving investors the confidence to count on us.