Where to Find 30-Year Fixed Commercial Mortgages

Updated: April 25, 2022 | By: LendVer Staff –

The subject of this article may seem confusing because most people think a 30-year fixed commercial mortgage (which includes mortgages on investment residential property) is just as prevalent as a 30-year fixed residential home mortgage. Once you start looking for a 30-year fixed commercial real estate mortgage you quickly realize that they are tough to come by.

So why can you easily find a residential 30-year fixed home mortgage but not a commercial one? 30-year fixed home mortgages exist in abundance in the residential loan space because most lenders sell their loans to Fannie Mae or Freddie Mac for a premium. The government has no problem holding debt for 30 years because it isn’t going anywhere, and will realize a sizable return on its mortgage investments regardless of how interest rates fluctuate. Also, the government often pools purchased loans and sells them as securities to institutional investors for a return. The original residential home lender doesn’t mind originating 30-year fixed loans because it gets paid as soon as it sells the loan.  

So who offers 30-year fixed commercial mortgages? In pursuit of a 30-year fixed commercial mortgage you may think the best place to start looking is at a bank (assuming you are a bankable borrower); but a bank is the least likely place to find one. A bank portfolios or holds all its loans, it doesn’t usually sell them. A bank earns revenue by maximizing its return on depositor capital and because the fate of interest rates is unpredictable, locking up capital for an extended period that could be at below market returns is not beneficial. A bank often wants you to pay off your loan early, which is why it usually has a 5 or 10-year balloon payment requirement (a balloon is when your loan expires and it must be paid off), or a shorter amortization of 15 or 20 years (meaning principal gets paid down faster).

It turns out that online commercial real estate lenders and marketplaces are the key to finding a 30-year fixed commercial mortgage. A non-bank commercial real estate lender, like a residential home lender, often earns its return when it sells or securitizes its loans, so it has no problem originating a longer term fixed commercial mortgage. That being said, commercial investors are not as familiar or comfortable with buying 30-year fixed loans from commercial lenders because commercial loans have more factors that could contribute to a default over a lengthy period of time.

So which lender has a 30 year fixed commercial mortgage? If you search the internet you’ll see many commercial finance companies that offer 30-year mortgage amortizations, but not 30-year fixed mortgages. You’ll also find a lot of articles and blog posts about how hard it is to find a 30-year fixed commercial mortgage. Fortunately, South End Capital offers a 30-year fixed-rate commercial real estate mortgage through its technology-enabled loan marketplace. South End Capital’s rates start at 4.75%, and offers stated income and/or light documentation 30-year fixed commercial mortgages so the process is super simple, and you can even finance up to 90% of your commercial property’s value.

What’s the catch? You might expect South End Capital to offer a 30-year fixed commercial mortgage to only the best borrowers and on the most generic commercial property types, but that isn’t the case. Borrowers with credit down to 620, who haven’t filed or can’t produce tax returns, or who even have overdue income taxes are eligible. South End Capital offers 30-year fixed commercial mortgages on a variety of property types including investment residential property (1 to 4 family homes) and more traditional commercial property like multifamily, mixed-use, office, retail, self-storage, warehouse, mobile home parks, auto-service, industrial property, and more.


30-year fixed rate commercial mortgages do exist, they are just very hard to find unless you know the right place to look. LendVer is focused on finding lenders that provide the unique programs our readers are looking for. South End Capital is a great option for almost any borrower looking for a 30-year fixed commercial or investment residential mortgage as long as you meet its loan marketplace guidelines.

Want to learn more about 30-year fixed commercial real estate loans? Contact our recommended best commercial real estate lender South End Capital.