Commercial Loans in Florida: Property Types, Loan Options and Costs

Short answer

A Florida commercial loan is underwritten mainly on the property's income: lenders compare net operating income to the new payment (DSCR) and cap the loan at a share of value (LTV). For owner-occupied business property, SBA 7(a) loans go up to $5 million and SBA 504 loans up to $5.5 million, as of October 2026. Investors usually use conventional commercial, DSCR or bridge loans, all business-purpose credit.

What counts as commercial property

Residential mortgage rules stop at four units. Anything beyond that, or any property used mainly for business, is financed as commercial. The common types in South Florida:

• Mixed-use: retail or office on the ground floor with apartments above. Common on older commercial corridors. Lenders look at how much of the income comes from the commercial space.
• Retail: strip centers, single-tenant buildings, storefronts. Tenant quality and lease length drive the loan.
• Office: small professional buildings and office condos. Lenders watch vacancy and how soon leases roll over.
• Warehouse and flex: industrial bays near the airport and port corridors. Often owner-occupied by the business that uses them.
• Multifamily, 5+ units: apartment buildings with five or more units are commercial loans, even though people live there. See multifamily loans.

The property type sets the lender pool. A bank that likes a 12-unit apartment building may pass on a single-tenant retail box, which is one reason a broker that can shop the file helps.

Loan types: conventional, SBA, DSCR and bridge

Conventional commercial loans come from banks, credit unions, life companies and other portfolio lenders. Terms are set by each lender: amortization, balloon date, prepayment penalty and personal guarantee all vary. See commercial loans.

SBA 7(a) is for operating small businesses. Per the SBA, as of October 2026:

• Maximum loan: $5 million.
• Uses include acquiring, refinancing or improving real estate and buildings.
• Maximum maturity: 25 years for real estate.
• SBA guaranty: up to 85% on loans of $150,000 or less and up to 75% above that.
• Real estate investment firms are not eligible when the property will be held for investment. The business has to occupy the building.

SBA 504 pairs a Certified Development Company (CDC) with a senior lender to finance long-term fixed assets. Per the SBA: maximum $5.5 million, 10-, 20- and 25-year terms, and the rate is pegged to 10-year U.S. Treasury issues. It can buy, build or renovate buildings or land. It cannot be used for working capital or for speculation or investment in rental real estate.

DSCR commercial loans are business-purpose loans qualified on the property's cash flow instead of your tax returns. Common for small multifamily and mixed-use buildings owned by investors. Our DSCR explainer covers the math.

Bridge loans are short-term financing to buy fast, reposition a vacant building, or finish a renovation before a long-term refinance. Expect higher cost and a clear exit plan. See bridge loans.

What lenders look at: NOI, DSCR and LTV

Three numbers decide most commercial files:

• NOI (net operating income): gross rents minus vacancy and operating expenses (taxes, insurance, repairs, management, utilities the owner pays). Debt payments are not an expense in NOI.
• DSCR (debt service coverage ratio): NOI divided by the annual principal and interest payment. A 1.00 means the building just covers its debt. Each lender sets its own minimum above that, and it changes by property type.
• LTV (loan-to-value): the loan divided by the appraised value or price, whichever is lower. See LTV.

Simple example with round numbers (no rate implied): a building with $300,000 in rents, 5% vacancy and $105,000 in expenses has NOI of $180,000. If the proposed loan's annual payment is $140,000, DSCR is $180,000 / $140,000 = 1.29. If the payment were $180,000, DSCR would be 1.00 and most lenders would cut the loan size.

Lenders also review: rent roll and lease terms, tenant credit, your experience owning similar property, your credit and liquidity, and for SBA, the operating company's cash flow. Rates vary daily and by property type; call 305-425-1990 for today's pricing.

Florida costs: doc stamps, intangible tax and insurance

Florida adds taxes at closing that many other states do not have. As of October 2026, per the Florida Department of Revenue and Florida Statutes:

• Doc stamps on the deed: $0.70 per $100 of price statewide. In Miami-Dade, property other than a single-family residence pays $0.60 plus a $0.45 surtax, $1.05 per $100 total. See Florida doc stamp tax.
• Doc stamps on the note: $0.35 per $100 of the loan. The $2,450 cap applies only to unsecured notes, not to a note secured by a mortgage.
• Intangible tax on the mortgage: a one-time 2 mills ($0.002) per dollar of the loan. See intangible tax.

Example: a $2,000,000 Miami-Dade warehouse bought with a $1,400,000 loan. Deed stamps $21,000. Note stamps $4,900. Intangible tax $2,800. Who pays the deed stamps is set by the contract.

Insurance and wind. Lenders require property coverage that includes windstorm, plus flood coverage when the building sits in a FEMA special flood hazard area. In South Florida, wind premiums are often the biggest swing in NOI. Get an insurance quote early, because a higher premium lowers NOI and can shrink the loan. A roof's age and a wind mitigation inspection can change pricing. For condo-style commercial units, the association's master policy and reserves also matter.

Documents to have ready

A complete package moves faster and gets better lender attention. Typical list:

• Purchase contract or current mortgage statement.
• Rent roll and copies of all leases.
• Trailing 12-month operating statement and the last two years of property income and expenses.
• Entity documents: articles of organization, operating agreement, EIN letter, certificate of good standing from Sunbiz.
• Personal financial statement and schedule of real estate owned.
• Bank statements showing down payment and reserves.
• For SBA: two to three years of business tax returns, interim financials and a debt schedule.
• Insurance quote, survey, and any environmental report the lender orders (common on warehouse and retail).

Commercial loans are business-purpose credit. Federal Regulation Z exempts credit made primarily for a business or commercial purpose, so consumer mortgage disclosures do not apply. Read your term sheet carefully: prepayment penalties, balloon dates and guarantees are all negotiable items.

How QMS shops a commercial loan

QMS Lending (NMLS #1781090) is an independent mortgage broker in Miami, FL, working with 100+ lenders. For commercial files we match the property type and your plan (own and operate, hold for rent, or reposition) to the lenders that actually do that deal, then compare term sheets side by side. Bilingual, English and Spanish. Subject to credit approval and property review. Call 305-425-1990.