A variety of properties can be used to finance commercial real estate loans. Office buildings (single-tenant, multi-tenant & skyscrapers), retail properties (shopping centers, strip malls, standalone retail stores), industrial properties (warehouses, distribution centers, etc.), hotels and self-storage properties are just some examples of properties that can qualify for commercial real estate loans.

The typical LTV ratio ranges from 65% to 80%, depending on the property type and borrower's creditworthiness. This means lenders are usually willing to finance 65% to 80% of the propertys appraised value, with the borrower providing the remaining 20% to 35% as equity. But exact LTV depends upon property type, borrower’s creditworthiness and real estate market trends.

Both recourse and non-recourse loans allow lenders to seize the assets that are given as collateral at the time of getting the loan in case the borrower defaults on the repayment. With a recourse loan, lenders can go after a borrower’s other assets if they don’t get back all of their money. But with a non-recourse loan, a lender can collect from the collateral but cannot go after other assets of the borrower. So, non-recourse loans have higher rates, stricter terms and other stringent conditions.

Yes, generally refinancing options are available. It can have several benefits such as lower monthly payments, extended terms, access to equity, avoidance of hefty balloon payments and more. But you might also have to be large upfront cost and pay a prepayment penalty from your lender too. Also, not all commercial properties can be refinanced.

Yes, there are prepayment penalties for commercial real estate loans in the US and they are pretty common. These penalties are fees charged to borrowers who repay their loans before the agreed maturity date to make up for the loss of anticipated interest income for the lenders.