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How this refinance option works
Small-balance commercial refinancing serves eligible commercial properties with loan requests below larger institutional programs. There is no universal definition or minimum: each lender sets property, geographic, credit and loan-size requirements, so the file must be routed carefully.
A neighborhood retail building, small mixed-use asset, medical or professional office, small warehouse or five-plus-unit apartment property may have a refinance request below $1 million or $2 million and still require full commercial underwriting.
Fixed transaction costs can be significant relative to a smaller loan. The comparison should include appraisal, environmental, legal, title, lender and broker costs—not only interest rate.
For one-to-four-unit rentals, DSCR or investor lending may be more suitable than a small commercial loan.