Commercial real estate financing in Florida covers a broad spectrum — from a small 5-unit apartment building in Tampa to a mixed-use retail/residential building in downtown Orlando to a medical office owner occupying their own practice space. Each scenario has different loan programs, different underwriting standards, and different lender options. Understanding which program fits your specific commercial property situation is the first step to efficient financing.
Residential DSCR vs Commercial DSCR — The Key Dividing Line
The single most important distinction in investment property financing:
Residential DSCR (1-4 units)
Governed by residential mortgage regulations. Loan amounts to $3M+. 30-year terms available. LLC vesting allowed. Most flexible non-QM product. This is the primary focus of Viador Partners' DSCR programs. Available statewide in Florida.
Commercial DSCR / Commercial Loan (5+ units or commercial property)
Governed by commercial lending regulations. Higher rates, shorter terms (typically 5-25 year amortization with 5-10 year balloon), personal recourse typically required, more complex underwriting. Higher minimum loan amounts. Requires commercial lender relationships.
The practical implication: a 4-unit apartment building can be financed with a residential DSCR loan at 30-year terms with no income documentation and LLC vesting. The same deal as a 5-unit building is commercial and requires a completely different loan product.
Florida Commercial Real Estate Loan Programs
The main commercial financing options for Florida properties:
- Commercial DSCR / Portfolio loans — For 5-8 unit small multifamily. Similar DSCR qualification methodology but commercial terms. Rates 7-10%, amortization 20-30 years, often with 5-10 year balloon. No income documentation on stronger programs.
- SBA 504 — Owner-occupied commercial real estate. 10% down, 25-year term, fixed rate on the SBA portion. Best option for Florida business owners buying their own building. Office, retail, medical, hospitality, light industrial.
- SBA 7(a) — More flexible than 504. Business acquisition including real estate, working capital, equipment. Up to $5M. 10-30% down depending on use.
- Commercial bridge loans — Short-term financing for value-add commercial acquisitions in Florida. Higher rates, fast close. Refinance into permanent financing after stabilization.
- CMBS loans — For larger commercial properties ($2M+). Securitized, no recourse, complex prepayment penalties. Not a Viador primary product but can be arranged through lender network.
Florida Commercial Investment Property Types
Common commercial investment scenarios in Florida:
- Small multifamily (5-20 units) — Active market in Tampa Bay, Orlando, and Jacksonville. Commercial DSCR or portfolio loan programs.
- Mixed-use — Ground-floor retail with residential units above. Common in Florida's revitalizing urban markets. Commercial underwriting with residential component analysis.
- Owner-occupied medical/dental/professional — Florida's growing healthcare sector creates significant SBA 504 demand. SBA 504 at 10% down is exceptional for practice owners buying their space.
- Retail strip centers — Neighborhood retail in Florida suburban markets. Cap rates 6-8% in suburban Tampa Bay and Orlando submarkets.
- Self-storage — Florida's mobile population and seasonal residents drive strong self-storage fundamentals. Commercial DSCR programs available.
Frequently Asked Questions
Properties with 1-4 residential units can use residential DSCR loans (30-year terms, no income documentation, LLC-vested). Properties with 5+ units or commercial use require commercial financing (shorter terms, higher rates, typically personal recourse, more complex underwriting).
For some commercial programs: yes. Commercial DSCR programs qualify on the property's net operating income rather than personal income. SBA loans require business income documentation (tax returns or P&Ls). Owner-occupied commercial requires business qualification.
SBA 504 (owner-occupied): 10% minimum. Commercial DSCR/portfolio loans: typically 25-35%. Commercial bridge: 20-30% of purchase price. Conventional commercial: 25-35%.
Viador Partners' primary focus is residential 1-4 unit investment property financing (DSCR, BPL, bridge). For commercial properties, Viador works with commercial lender partners. Submit your commercial scenario for a review and appropriate referral.
No — residential DSCR programs cover 1-4 unit properties only. A 5-unit building is commercial and requires commercial financing programs with different terms, rates, and qualification standards.
SBA 504 is typically the best option — 10% down, 25-year term, fixed rate on the SBA portion. It is specifically designed for owner-occupied commercial real estate and is the most favorable terms available for a business buying its own space.