Commercial Mortgage-Backed Securities
CMBS Loans — Compare CMBS Lenders for $2M to $200M+ Non-Recourse Financing
Access competitive fixed rates with non-recourse structures and up to 80% LTV. Ideal for office, retail, multifamily, and industrial properties through commercial mortgage-backed securities.
CMBS Loans, Explained
A CMBS (commercial mortgage-backed securities) loan is a commercial real estate loan that is pooled with other loans, packaged into bonds, and sold to investors on the secondary market. That structure lets CMBS financing offer non-recourse protection, fixed rates, and higher leverage than many bank loans, making it well suited to larger, stabilized, income-producing properties — office, retail, multifamily, industrial, and hospitality among them. Lenders focus on the property and the entity behind it, weighing occupancy, debt service coverage, and leverage rather than personal income alone.
Because the loan is sold to bond investors, prepayment is handled through structures like defeasance or yield maintenance, so planning your exit matters. Buyers comparing options often look at conventional commercial loans, broader commercial real estate financing, or multifamily loans for apartment assets.
$2M - $200M+
Loan amounts
75-80% LTV
Competitive leverage
5-10 Years
Fixed rate terms
Non-Recourse
Limited liability
CMBS Loan Advantages
Non-Recourse Structure
Protection from personal liability in most scenarios
Fixed Rate Financing
Lock in rates for the entire loan term
High Leverage
Up to 80% LTV on stabilized properties
Flexible Prepayment
Various prepayment options including yield maintenance
Long-Term Stability
10-year fixed terms with 25-30 year amortization
Assumable Loans
Transferable to qualified buyers with lender approval
Typical CMBS Loan Terms
Loan amount$2M to $200M+
Fixed-rate term5, 7 or 10 years
Amortization25-30 years, or interest-only
RecourseNon-recourse, with standard carve-outs
PrepaymentDefeasance or yield maintenance
AssumableYes, with servicer approval
How CMBS Lenders Underwrite a Loan
CMBS lenders (often called conduit lenders) are investment banks and commercial banks that make loans to pool into bonds. They size each loan on the property's cash flow and value more than on the borrower's balance sheet. Typical requirements:
Debt Service Coverage
1.25x+
Net operating income over the annual payment
Debt Yield
8-10%+
Net operating income as a share of the loan
Loan-to-Value
Up to 75-80%
Based on a third-party appraisal
Sponsor Strength
~25% / 10%
Net worth and liquidity as a share of the loan
After closing, a servicer manages the loan for the bondholders, so CMBS terms are firm and changes go through the servicer. We compare CMBS lenders against life insurance companies, banks and debt funds so you can see whether a CMBS loan is the best fit for your property.
Eligible Property Types
Office Buildings
Retail Centers
Multifamily (5+ units)
Industrial Properties
Warehouse/Distribution
Hotels (select service)
Self-Storage
Mixed-Use Properties
Senior Housing
Student Housing
CMBS Process Timeline
1
Application & Initial Review
1-2 weeks
2
Due Diligence & Underwriting
3-4 weeks
3
Loan Committee Approval
1-2 weeks
4
Documentation & Closing
2-3 weeks
CMBS Loan Requirements
Property Requirements
Minimum Loan Amount:$2,000,000
Maximum LTV:75-80%
Minimum DSCR:1.25x
Occupancy Requirement:85%+ (stabilized)
Borrower Requirements
Credit Score:650+ (entity)
Net Worth:25% of loan amount
Liquidity:10% of loan amount
Experience:3+ years CRE
Explore Related Financing Options
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$500K–$25M
Conventional Commercial Loans
Standard bank financing for stabilized commercial properties with proven cash flow.
Learn more$1M–$50M+
Multifamily Loans
Specialized financing for apartment buildings, condos, and multi-unit residential properties.
Learn more$500K–$50M+
Commercial Real Estate Loans
Financing for office buildings, retail centers, industrial properties, and mixed-use developments.
Learn more$500K–$25M
Portfolio Loans
Flexible lending from banks that hold loans on their own books with customizable terms.
Learn moreFAQ
Frequently Asked Questions
A CMBS (Commercial Mortgage-Backed Securities) loan is a type of commercial real estate loan that is pooled with other loans, packaged into bonds, and sold to investors on the secondary market. CMBS loans offer competitive rates, non-recourse structures, and higher leverage than traditional bank loans.
CMBS lenders, also called conduit lenders, are investment banks and commercial banks that originate commercial mortgages to pool into bonds. After closing, a servicer manages the loan on behalf of the bondholders. We compare CMBS lenders with life insurance companies, banks and debt funds for each deal.
CMBS loans offer several advantages including non-recourse lending (limiting personal liability), higher LTV ratios (up to 75-80%), competitive fixed interest rates, longer loan terms (5-10 years), and the ability to finance larger properties that may exceed a single bank's lending limits.
CMBS loans can finance a wide range of commercial properties including office buildings, retail centers, multifamily housing, industrial warehouses, hotels, and mixed-use developments. The property must typically be stabilized with consistent cash flow.
CMBS loans typically start at $2 million and can go up to $100 million or more. They are best suited for larger commercial properties with stable income streams and strong occupancy rates.
CMBS lenders focus on the property and the entity behind it. Typical guidelines include a minimum loan of $2 million, up to 75-80% LTV, a DSCR of at least 1.25x, and 85% or greater occupancy. Borrowers generally need a 650+ entity credit score, net worth around 25% of the loan, liquidity near 10%, and 3+ years of CRE experience.
A CMBS loan usually closes in roughly two to three months. The process moves through application and initial review (1-2 weeks), due diligence and underwriting (3-4 weeks), loan committee approval (1-2 weeks), and documentation and closing (2-3 weeks). Preparing financials and property reports early helps keep the timeline efficient.
Because CMBS loans are pooled and sold to bond investors, they use structured prepayment rather than a simple payoff. Common options include defeasance, where the loan is replaced with government securities that match the payments, and yield maintenance. These structures protect investors, so it is important to plan your exit before you commit.
CMBS loans offer non-recourse structures, higher leverage up to 75-80% LTV, fixed rates, and the ability to finance larger deals that may exceed a single bank's limit. Traditional bank loans can be more flexible on prepayment and relationship terms. CMBS often wins for stabilized, income-producing properties seeking maximum leverage.
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