Are there any specific credit score requirements for a Commercial Property Purchase Loan?

There are generally no absolute minimum credit score requirements set in stone for getting a commercial property purchase loan. This is because the property itself serves as collateral that reduces lending risk. However, the creditworthiness of the applicant is a key criterion assessed by financial institutions for such loans. Some general credit score guidelines are:

• Most loan providers prefer a credit score of at least 680-700 to approve a commercial real estate loan. Applicants with scores in the mid-700s stand the best chance of securing favourable loan terms.
• Applicants with scores between 620 and 680 may be considered, but they will likely be approved for higher interest rates or smaller loan amounts.
• Applicants with scores below 620 may still get approved if they provide higher down payments.
• For new businesses without sufficient operational history, owners' personal credit scores take on added importance.

Beyond the score, aspects like duration of credit, mix of credit types, and past performance on major debts influence creditworthiness.