Commercial loans generally require a down payment of between 20-40%, with some exceptions. Down payment requirements vary significantly due to a variety of factors, including loan use, credit score, borrower history, and more.
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Do Commercial Loans Require Commercial Mortgage Insurance?
Most single-family home mortgages require the borrower to pay private mortgage insurance (PMI), or, for HUD and USDA loans, a mortgage insurance premium (MIP). This insurance protects the lender in case the borrower falls behind on their payments or defaults on their loan. However, the vast majority of multifamily and commercial real estate loans do not require mortgage insurance, with the exception of HUD multifamily loans.