Commercial real estate is typically defined as any property primarily utilized for business purposes. Any residential dwelling consisting of five or more living units or any property located in a business or industrial zoning area is usually classified as a commercial property.

Financing commercial properties is distinctively different than mortgaging residential properties. Commercial loans typically loan up to 75% of appraised value and the property itself typically must cover 125% of all costs including principle and interest payments, taxes, insurance, maintenance and utilities, if paid by the owner.

The terms for commercial loans are usually 15 years, occasionally up to 25 years with a five or ten year balloon payment.