Mortgage Options

Hospital Loans & Clinic Mortgages

A hospital is a healthcare facility dedicated to providing patient treatment through specialized medical staff and advanced equipment. While hospitals often accommodate longer-term patient stays, they may also offer a range of outpatient and emergency services. Modern hospitals are typically funded through a variety of sources, including government support, health organizations (both for-profit and non-profit), health insurance providers, and charitable contributions.

Prosper Financing offers a comprehensive selection of financing solutions tailored to hospitals of all sizes. Whether you are looking to build, expand, renovate, or refinance a healthcare facility, their flexible loan options are designed to meet the unique needs of the hospital sector.

Health Care Center or Medical Clinic

A clinic, also known as an outpatient clinic, is a smaller healthcare facility focused on providing care to outpatients—individuals who do not require overnight stays. Unlike larger hospitals that also accommodate inpatients, clinics are typically embedded within communities and cater to a wide range of medical needs. While most clinics remain modest in size, some expand over time to become large institutions, sometimes rivaling hospitals in scope, yet still retain the title of “clinic.” Many clinics are affiliated with hospitals or medical schools, enhancing their access to resources and specialized expertise.

Clinics often specialize based on the type of care they provide. General practice clinics are typically managed by one or more general practitioners or practice managers, offering comprehensive primary care services. Other clinics are operated by professionals in specific health fields—physiotherapy clinics by physiotherapists, psychology clinics by clinical psychologists, and so forth. This specialization allows clinics to deliver focused, expert care tailored to the needs of their patient populations.

Conventional | FHA/HUD | USDA | SBA

Self Storage Loans

Self storage provides a flexible solution for individuals and small businesses needing extra space without the commitment or expense of larger warehouses or commercial leases. Whether someone is moving, downsizing, decluttering, or a business needs to store seasonal inventory, equipment, or important documents, self storage units offer a range of sizes to accommodate different needs. Many facilities also offer climate-controlled units, which are ideal for sensitive items such as electronics, artwork, or paperwork that could be damaged by extreme temperatures or humidity. This versatility makes self storage a practical choice for both short-term and long-term storage requirements.

Security and privacy are key features of self storage. Tenants are responsible for locking their own units and keeping the key, ensuring that only they have access to their belongings. Facility staff do not enter the units or handle the stored items, maintaining a clear boundary between the operator and the tenant’s property. In the event of non-payment, operators may enforce a legal lien, which can result in the auctioning of the contents, but only after following strict legal procedures. To enhance security, most modern facilities use computer-controlled access gates, surveillance cameras, and on-site management. These measures provide peace of mind, knowing that stored items are protected while still being easily accessible to the tenant whenever needed.

Mixed Use Commercial Mortgages

A mixed-use development refers to a building or group of buildings designed to accommodate multiple types of uses within the same project. This can include a blend of residential, commercial, office, industrial, institutional, or other land uses, often integrated to create vibrant, multi-functional spaces within a single community or property.

These developments are carefully planned to maximize land use efficiency and foster dynamic, walkable environments where people can live, work, shop, and socialize without needing to travel far. For example, a mixed-use building might feature retail shops and restaurants on the ground floor, office spaces on the middle levels, and residential apartments or condominiums above. Some projects may also include amenities such as fitness centers, community rooms, or green spaces, further enhancing the quality of life for residents and visitors.

Mixed-use developments are increasingly popular in urban and suburban settings because they help create lively neighborhoods, support local businesses, and reduce reliance on cars by encouraging pedestrian activity. They also offer economic and environmental benefits by making more efficient use of infrastructure and resources. Whether revitalizing a city center or creating a new community hub, mixed-use projects are a key strategy in modern urban planning and real estate development.

In addition to our core financing programs, we offer a range of government agency-sponsored loan options for mixed-use properties, including SBA-504, SBA 7(a), and USDA loans. These programs provide flexible and competitive financing solutions tailored to the unique needs of mixed-use developments.

Office Commercial Mortgages

While offices can technically be established in almost any location or type of building, modern office requirements often make this more challenging. Legal standards, such as adequate lighting, and technical needs, like advanced networking infrastructure, must be met. Additionally, considerations for security and the flexibility to adapt layouts have become increasingly important. These evolving needs have led to the development of specialized buildings designed specifically for office use.

An office building, sometimes referred to as an office block, is a type of commercial property primarily intended to house office spaces. The main function of these buildings is to provide a suitable workplace and environment for administrative and managerial staff. Within these buildings, employees are typically assigned designated work areas equipped with desks, computers, and other necessary tools to support their daily tasks. The design and amenities of office buildings are tailored to foster productivity, collaboration, and comfort for the workforce.

Retail Commercial Loans

A shopping mall, or shopping center, is a complex consisting of one or more buildings that house multiple retail units. These units are connected by walkways, allowing visitors to easily move from store to store in a comfortable, often climate-controlled environment. Shopping malls are designed to offer a wide variety of shopping, dining, and entertainment options all in one location, making them convenient destinations for consumers.

In contrast, a strip mall—also known as a shopping plaza or mini-mall—is an open-air retail center where stores are arranged in a single row with a sidewalk running in front of the storefronts. Strip malls are typically developed as a single unit and feature expansive parking lots directly in front of the shops for easy access by car. They are usually located along major roads or highways and are largely self-contained, with limited pedestrian connections to the surrounding neighborhoods.

Retail Properties

In the U.S. and Canada, smaller strip malls are more common and are often situated at the intersections of major roads within residential neighborhoods, catering primarily to the local community. These centers usually feature a mix of service-oriented businesses such as grocery stores, dry cleaners, small restaurants, and other convenience retailers. In the past, pharmacies were often located next to grocery stores, but now it’s common to find pharmacy counters inside the grocery stores themselves. Many supermarkets also include additional amenities like bank branches and gourmet coffee shops, reflecting changing consumer preferences. Gas stations, banks, and other businesses might also have their own standalone buildings within the strip mall’s parking lot.

Larger strip malls, often referred to as power centers in the real estate industry, are anchored by big-box retailers such as Walmart or Target. These centers serve a broader population and typically feature a diverse mix of large retailers, which may include electronics stores, bookstores, and home improvement outlets. There are usually fewer power centers in a given city compared to the more numerous, grocery-anchored strip malls. The number and type of retailers can vary widely, with some centers hosting just a few major stores and others accommodating a dozen or more. Some strip malls even blend the features of both types, offering a combination of convenience-oriented and large-scale retail options to meet the needs of a wider customer base.

Hotel Loans - Hospitality Commercial Mortgages

A hotel, also known as a hospitality property, is a business that provides short-term lodging for guests. Traditionally, hotel rooms offered only the essentials, such as a bed, a cupboard, a small table, and a washstand. Today, hotel accommodations have evolved to include modern conveniences like private bathrooms, work desks, air conditioning or climate control, and sometimes even small kitchen areas. Common in-room amenities now often feature telephones, alarm clocks, televisions, and internet access. Many rooms also offer mini-bars stocked with snacks and beverages, as well as coffee makers. Larger hotels may go beyond basic lodging by offering restaurants, swimming pools, childcare, and facilities for meetings or social events. Some hotels even include meals as part of their room rates.

Are hotels considered owner-occupied or investment properties? According to SBA underwriting guidelines, hotels and motels are classified as owner-occupied properties. In contrast, most other lenders view hospitality properties as investment properties when evaluating and funding loans.

What are the current interest rates for hotel loans? Interest rates for hospitality property loans can vary greatly. The rate you receive will depend on several underwriting factors, including property details, loan-to-value (LTV), debt service coverage ratio, debt yield, property performance, and your financial strength and credit history. For a precise rate quote, you’ll need to complete a short application and submit your financial documents. You can find general rate ranges for various loan types—such as conventional, CMBS, SBA, insurance, and USDA—on our commercial loan rate page.

Can SBA loans be refinanced into other SBA loan? In most cases, SBA guidelines do not permit refinancing one SBA loan into another. However, there are exceptions if you meet certain criteria established by the Small Business Administration.

How are prepayment penalties for an SBA 504 loan calculated? The prepayment penalty for an SBA 504 loan is based on a declining scale (10-9-8-7-6-5-4-3-2-1%). To calculate it, multiply your remaining loan balance by the bond’s interest rate, then multiply that amount by the percentage for your current year. You can use our SBA 504 prepayment calculator to simplify this process.

What is the maximum loan-to-value (LTV) for a hospitality property? Maximum LTVs for hospitality properties range from 60% to 80%. Conventional loans typically offer 60% to 75% LTV, CMBS loans go up to 70%, and SBA or USDA loans can reach up to 80% LTV.

What is the difference between flagged and unflagged hotels? Flagged hotels are part of a franchise network, such as Wyndham, Comfort Suites, Motel 6, Holiday Inn, or Hilton. Unflagged hotels are independently owned and not affiliated with a major brand.

What is the maximum SBA guarantee for hotel loans? For SBA 7(a) loans, the maximum guarantee is $2 million. For SBA 504 loans, it increases to $5 million. For more details on SBA loan programs, including eligibility and underwriting standards, please refer to our SBA Loan guide.

Conventional | Conduit/CMBS | Insurance | USDA | SBA

Industrial Property Mortgages

1. Manufacturing Facilities
* Heavy Manufacturing: Large, specialized plants designed for producing heavy-duty goods and materials, such as automobiles, ships, or steel. These properties often feature extensive power supplies, reinforced floors, and custom machinery. They typically require significant renovations to adapt to new tenants due to their specialized nature.
* Light Manufacturing: Smaller and more flexible than heavy manufacturing, these facilities are used for assembling or producing lighter goods, such as electronics or consumer products. They are easier to reconfigure for different tenants and generally require less specialized equipment.

2. Warehousing and Distribution Centers
* Warehouses: Industrial buildings primarily used for the storage of goods. They often have loading docks and may include a small percentage of office space. Some warehouses, like truck terminals, are focused on the transfer of goods rather than long-term storage.
* Distribution Centers: Specialized warehouses designed for the rapid movement and distribution of goods. These facilities are typically located near major transportation routes and are optimized for logistics and shipping efficiency.

3. Flex Space
* Flexible properties that can accommodate a variety of uses, including light manufacturing, warehousing, research and development, and office space. Flex spaces often have a significant office component and can be easily adapted to tenant needs.

4. Specialized Subtypes
* Cold Storage: Warehouses equipped for temperature-sensitive goods.
* Data Centers: Facilities designed for housing servers and IT infrastructure.
* Showrooms: Spaces combining display areas with storage or distribution functions.
* Industrial Parks: Clusters of industrial buildings, often with shared infrastructure and amenities.