Conventional Term Loans for Commercial Property

Lock In Long-Term, Fixed-Rate Financing for Your Stabilized Property

Secure reliable permanent debt for stabilized commercial real estate. Through AVANA's credit union network, our conventional term loans fund acquisitions, refinances, partner buyouts, and property improvements. Get a soft quote in 1-2 business days.

Apply for a Loan →Schedule a Call

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Since 2002 · $6.5B+ Funded · $1B AUM

Permanent Debt for Stabilized, Income-Producing CRE

A conventional term loan is long-term financing for stabilized, income-producing commercial real estate. Once occupancy is up and cash flow is predictable, it's the right structure to lock in permanent debt at a known rate — where a bridge loan fits transitional assets.

AVANA CUSO places these loans through a trusted network of credit unions. That funding source matters: it typically means longer amortization — up to 30 years for multifamily, 25 for other types — and no prepayment penalties.

Common uses of proceeds:

Acquisition — purchase a stabilized, income-producing property
Refinance — replace maturing bridge or bank debt with lower-carry permanent financing
Partner buyouts — use existing equity to acquire a co-owner's interest
Property improvements — non-ground-up renovation, deferred maintenance, or tenant improvements
Bridge loan exit — move a stabilized asset out of short-term debt into permanent financing

A Fast, Straight Answer

Clear yes or no on eligibility — fast. Soft quote within 1–2 business days. We don't string borrowers along with conditional maybes

Competitive Long-Term Rates

Rates indexed to 5-Year CMT + 2.00%–3.00%, fixed for the initial 5-year term. Resets every 5 years on 10-year loans.

No Prepayment Penalty

Refinance, sell, or exit at any time without a breakage cost — a material advantage over most bank term loans with step-down prepayment schedules.

Longer Amortization, Lower Monthly Carry

25-year amortization for most property types; 30-year for multifamily. Lower monthly debt service improves DSCR and preserves operating cash flow.

AVANA CUSO Conventional Loan: Rates and Terms

Rates and structures vary by property type and borrower qualifications. All figures are indicative — contact us for property-specific terms.

Loan amounts

$1MM - $15MM

Available for stabilized, income-producing commercial properties

Interest rates

5-Year CMT + 2.00%–3.00%

Designed to fund mid- to large-scale commercial real estate projects

LTV

Up to 75%

Up to 75% of appraised value (up to 65% for franchised hotels and restaurants)

LTV

Up to 75%

Up to 75% of appraised value (up to 65% for franchised hotels and restaurants)

Uses of proceeds

Acquisition and Partner Buyouts, Refinance, Property Improvements (non ground up)

A fit if you're: an experienced CRE operator (3+ years operating, 680+ FICO) looking to lock in permanent, fixed-rate debt on a stabilized, income-producing property — borrowing $1M–$15M at up to 75% of appraised value, at a DSCR of 1.25x or better, with a full-recourse guaranty

Wide Range of Asset Types

Franchised Hotels

→

Franchised Restaurants

→

Industrial

→

Medical Offices

→

Mixed-use

→

Multifamily

→

Retail

→

Self-Storage

→

A Streamlined Process

We make financing simple, transparent, and fast from application to funding

Submit Application

Submit your application with pre-qualification documents. We’ll review and issue a soft quote within 1-2 business days

Review

We review initial documents and confirm loan structure and key terms. If the deal meets criteria, we issue a Letter of Intent with proposed terms

Approval & Terms

We complete underwriting and order third-party reports as needed. Credit team issues final approval when complete (timing can vary)

Closing & Funding

We prepare final loan documents, open escrow, and coordinate closing. Funds are released once closing requirements are met

Proven Success Stories

We’ve helped businesses across industries

Featured

38-Unit Multifamily in Newark, NJ

Loan Purpose:

Cash-Out Refinance

Asset Class:

Multi-Family

Loan Amount:

$5,450,000

Featured

The Hotel Majestic in San Fancisco, CA

Loan Purpose:

Cash-Out Refinance

Asset Class:

Hotel

Loan Amount:

$5,500,000

Frequently Asked Questions

Find answers to common questions

Which businesses are a good fit for a conventional term loan?

Conventional term loans suit established commercial real estate owners and operators with stabilized, income-producing properties, a DSCR of at least 1.25x (1.35x for retail, hotels, and restaurants), documented operating history, and strong borrower financials. It's well-suited for investors who don't meet SBA owner-occupancy requirements but want long-term permanent debt. It's not the right fit for transitional assets, properties in lease-up, or ground-up construction — bridge or construction financing is more appropriate for those.

What loan amounts, LTVs, terms, and rate structures are common?

AVANA CUSO conventional loans range from $1M to $15M with max LTV of 75% for most property types (65% for franchised hotels and restaurants). Terms are 5–10years, with amortization up to 30 years for multifamily and 25 years for all other types, with monthly principal and interest payments. Rates are fixed for the initial 5-year period based on the 5-Year CMT + 2.00%–3.00%, resetting after year 5 on 10-year loans. No prepayment penalties apply. Loan fees are 1.0%–2.0%.

How does a conventional term loan compare to an SBA loan?

A conventional term loan is 100% lender-funded with no government guarantee —which means faster processing, simpler documentation, and no SBA owner-occupancy requirement. It typically requires stronger credit metrics but is the right fit for investor-owned, stabilized properties. An SBA 504 loan is partially SBA-guaranteed, enabling higher leverage (up to 90% total projectcost) and longer fixed terms, but requires owner-occupancy of 51%+ and adds SBA-specific documentation and fees. AVANA CUSO's no-prepayment-penalty structure and longer amortization are specific advantages not typically available under SBA 504.

What can conventional term loan proceeds be used for?

Proceed scan be used for property acquisition (purchasing a stabilized income-producing property), refinancing existing debt (replacing maturing loans with better terms or longer amortization), partner buyouts (using existing equity to acquire a co-owner's interest), or non-ground-up property improvements such as renovation, deferred maintenance, or tenant improvements. Proceeds cannot fund ground-up construction — a construction loan is the appropriate product for new builds.

How long does the process usually take?

Plan on approximately 30–45 days from a signed LOI to closing, depending on third-party diligence — primarily appraisal and Phase I environmental timing. We issue a soft quote within 1-2 business days of receiving pre-qualification materials, and an LOI follows within 3–5 business days for deals that fit our program. Borrowers with organized financial packages consistently close at the faster end of that range.

Learn More

What documents are typically required?

To issue an LOI, we typically request: property address and description; loan amount and use of proceeds; list of all owners with 20%+ interest and proposed guarantors; 3 years of property financial statements (P&L and balance sheet); T-12 financials dated within 90 days; current rent roll; and personal financial statements for all guarantors including a 3-year personal tax return history. For refinances, we also need current loan balance, prepayment penalty information, and cost basis. We provide a complete checklist at the time of the LOI.

Apply for a Conventional Loan Today

Submit a short pre-qualification and our team will respond within 1–2 business days. Provide the property type, location, approximate loan size, and use of proceeds — we'll give you a straight answer on fit and indicative terms

Apply for a Loan →Schedule a Call ↗

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Our Team

About Sanat Patel

As Chief Lending Officer at AVANA Companies and Chair of the Board at AVANA Bank, Sanat Patel brings more than three decades of experience in financial services, private credit and commercial banking, with a proven track record in loan structuring, risk management, and balance sheet growth. Sanat has led strategic initiatives that connect institutional capital with entrepreneurial ambition, supporting the growth of businesses, and owners engaged in commercial real estate across the U.S. He has built and scaled lending platforms in partnership with banks and credit unions, developing tailored financial solutions that drive job creation and foster inclusive economic development.

Sanat Patel

Chief Lending Officer