Commercial Real Estate Financing in Alabama

Commercial Loan Direct (CLD) provides commercial real estate loans in the state of Alabama. Current commercial loan rates in Alabama range from 5% to 12.95%, depending on the loan program. CLD is a national commercial mortgage banker offering aggressively priced programs and superb service. CLD originates loans for its parent company CLD Financial which provides a wide variety of lending vehicles. Our company is currently targeting owner occupied and investment properties over $1 Million in the state of AL.

Alabama Commercial Loan Rates

Loan Types Rates LTV Loan Amount Occupancy
Conventional 5% - 8.95% 80% $1,000,000+ Investment + Owner Occupied
Conduit / CMBS 5.9% - 7.86% 75% $2,000,000+ Investment
Insurance 5.3% - 8.68% 75% $5,000,000+ Investment + Owner Occupied
FHA / HUD 4.94% - 6.29% 83.3% $5,000,000+ Investment
USDA 5.45% - 9.8% 85% $1,000,000+ Investment + Owner Occupied
Bridge 5.95% - 12.95% 80% $1,500,000+ Investment
Construction 5.7% - 8.95% 83.3% $1,000,000+ Investment
SBA 5.45% - 8.95% 85% - 90% $1,000,000+ Owner Occupied

Note: The commercial mortgage rates displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any commercial mortgage interest rate or data entry errors that might affect the displayed commercial loan rates. Commercial loan rates may change at any time and without notice.

Types of Commercial Loans in Alabama

Investment Property Mortgages

The types of mortgages available for these types of properties are Conventional, CMBS / Conduit, Insurance, and Agency (FHA / HUD and USDA) products. Bridge and/or Construction mortgages are also available on a case-by-case basis in order to reposition, stabilize or construct buildings. Commercial real estate investment properties can include office, retail, industrial/warehouse, self-storage, healthcare (medical office, skilled nursing facility, memory care, hospitals), hospitality, (hotel, motel, resort), and mixed use.

Owner Occupied Commercial Mortgages

Owner-Occupied commercial real estate properties in which the owner occupies at least 50% of the premises and can include office, retail, industrial/warehouse, self-storage, healthcare (medical office, skilled nursing facility, memory care, hospital), hospitality (hotel, motel, resort), mixed use, or any other type of commercial property. The types of mortgages available for owner-occupied buildings include Conventional, Insurance, and Agency programs including FHA / HUD, SBA, and USDA. Construction mortgages are also available on a case-by-case basis in order to develop or reposition a property for the owner's use.

Commercial loan landscape in Alabama (high-level snapshot)

Alabama’s commercial lending market is active but selective. Most lenders are still doing deals, but underwriting is tighter than a few years ago: stronger debt service coverage, more equity, and heavier focus on tenant strength and cash-flow durability (especially for refinances).

What lenders are most comfortable financing

Owner-occupied properties (where the operating business cash flow supports repayment) tend to be among the most “financeable” transactions, particularly when financials are clean and the borrower has experience in the business.

Industrial and light manufacturing often underwrite well in Alabama—especially in corridors influenced by manufacturing, logistics, and defense/aerospace ecosystems (North Alabama stands out). Lenders like predictable demand and easier exit liquidity compared with tougher asset classes.

Stabilized neighborhood retail (service-based tenants, necessity retail) can still pencil when occupancy is solid and leases are not near-term rollover risks.

Where underwriting gets tougher

Office is generally the hardest category. Many lenders require lower leverage, stronger sponsorship, and clear leasing visibility. Older/vintage buildings and weak submarkets face the most friction.

Transitional properties (value-add with vacancy, heavy capex, or short remaining lease terms) are possible, but lenders often demand more equity, larger reserves, and a credible path to stabilization.

Refinances can be difficult when a prior low-rate loan is rolling into today’s higher-rate environment—debt payments rise and DSCR can compress, forcing paydowns or re-trades.

Market-by-market dynamics (how lenders tend to think)

Huntsville / North Alabama: Often viewed as lender-friendly for industrial, flex, and certain owner-user deals because of defense/aerospace and advanced manufacturing tailwinds. Stronger employment and supplier activity can help underwriting narratives.

Birmingham: A larger, more mixed market. Lenders can be comfortable with stabilized multifamily and well-located retail/industrial, but office is typically scrutinized. Deal terms vary sharply by submarket and asset quality.

Mobile / Coastal Alabama: Industrial/logistics tied to port/trade activity can underwrite well. Near-coast properties may face more lender attention on insurance costs, deductibles, and reserve requirements.

Who is lending (and what that usually means for terms)

Community & regional banks are often the core of the market for small-to-mid commercial loans. They can price well, but they prefer conservative leverage and strong borrower/guarantor profiles.

Credit unions sometimes compete aggressively on owner-occupied or smaller-balance deals, but policies vary widely by institution.

Non-bank lenders / debt funds / CMBS can be options for larger loans, special situations, or when banks step back. They may move faster on structure, but pricing and fees can be higher and covenants tighter.

What “good” looks like to a lender right now

A strong Alabama commercial loan package typically includes: documented cash flow (not just projections), healthy DSCR, reasonable leverage, clear collateral value support, and a straightforward story about use of proceeds and exit strategy.

For investor property, lenders heavily weight occupancy, lease term, tenant credit/quality, historical collections, and realistic assumptions on renewals and expenses.

Bottom line

In Alabama, commercial lending is best described as available, but disciplined. Industrial and owner-occupied deals are generally the path of least resistance, while office and transitional assets require stronger sponsorship and more conservative terms.

Locations Served in Alabama

We are proud to be serving the state of Alabama. Here are our commercial loan statistics for this state.

Alabama Cities and Towns Served

73

Lending Cities

Commercial loan direct provides services in the following Alabama cities. Please note we may be able to provide services in other cities as well by request. Rates are dependent on the market in your locale, feel free to use the provided Alabama economic reports to get a better understanding of your market.

  • Abbeville
  • Adamsville
  • Alabaster
  • Albertville
  • Alexander City
  • Alexandria
  • Aliceville
  • Andalusia
  • Anniston
  • Arab
  • Argo
  • Ashford
  • Ashland
  • Ashville
  • Athens
  • Atmore
  • Attalla
  • Auburn
  • Autauga County
  • Baldwin County
  • Ballplay
  • Barbour County
  • Bay Minette
  • Bayou La Batre
  • Bear Creek
  • Berry
  • Bessemer
  • Bibb County
  • Birmingham
  • Blount County
  • Blountsville
  • Blue Ridge
  • Boaz
  • Brent
  • Brewton
  • Bridgeport
  • Brighton
  • Brook Highland
  • Brookside
  • Brookwood
  • Brundidge
  • Bullock County
  • Butler
  • Butler County
  • Bynum
  • Cahaba Heights
  • Calera
  • Calhoun County
  • Camden
  • Carbon Hill
  • Carlisle-Rockledge
  • Carrollton
  • Cedar Bluff
  • Center Point
  • Centre
  • Centreville
  • Chalkville
  • Chambers County
  • Chatom
  • Chelsea
  • Cherokee
  • Cherokee County
  • Chickasaw
  • Childersburg
  • Chilton County
  • Choccolocco
  • Choctaw County
  • Citronelle
  • Clanton
  • Clarke County
  • Clay
  • Clay County
  • Clayton
  • Cleburne County
  • Cleveland
  • Clio
  • Coaling
  • Coffee County
  • Colbert County
  • Collinsville
  • Columbiana
  • Concord
  • Conecuh County
  • Coosa County
  • Coosada
  • Cordova
  • Cottonwood
  • Covington County
  • Cowarts
  • Crenshaw County
  • Creola
  • Crossville
  • Cullman
  • Cullman County
  • Dadeville
  • Dale County
  • Daleville
  • Dallas County
  • Danville
  • Daphne
  • Dauphin Island
  • Deatsville
  • Decatur
  • DeKalb County
  • Demopolis
  • Dixiana
  • Dora
  • Dothan
  • Double Springs
  • East Brewton
  • East Florence
  • Eclectic
  • Elba
  • Elberta
  • Elmore
  • Elmore County
  • Emerald Mountain
  • Enterprise
  • Escambia County
  • Etowah County
  • Eufaula
  • Eutaw
  • Evergreen
  • Fairfield
  • Fairhope
  • Falkville
  • Fayette
  • Fayette County
  • Fayetteville
  • Flint City
  • Flomaton
  • Florala
  • Florence
  • Foley
  • Forestdale
  • Fort Deposit
  • Fort Payne
  • Fort Rucker
  • Franklin County
  • Frisco City
  • Fultondale
  • Fyffe
  • Gadsden
  • Gardendale
  • Geneva
  • Geneva County
  • Georgiana
  • Glencoe
  • Good Hope
  • Goodwater
  • Gordo
  • Grand Bay
  • Grayson Valley
  • Graysville
  • Greene County
  • Greensboro
  • Greenville
  • Grove Hill
  • Guin
  • Gulf Shores
  • Guntersville
  • Hackleburg
  • Hale County
  • Haleyville
  • Hamilton
  • Hanceville
  • Harpersville
  • Hartford
  • Hartselle
  • Harvest
  • Hayden
  • Hayneville
  • Hazel Green
  • Headland
  • Heflin
  • Helena
  • Henagar
  • Henry County
  • Highland Lakes
  • Hokes Bluff
  • Holt
  • Holtville
  • Homewood
  • Hoover
  • Houston County
  • Hueytown
  • Huguley
  • Huntsville
  • Indian Springs Village
  • Inverness
  • Irondale
  • Jackson
  • Jackson County
  • Jacksonville
  • Jasper
  • Jefferson County
  • Jemison
  • Kimberly
  • Kinsey
  • Ladonia
  • Lafayette
  • Lake Purdy
  • Lake View
  • Lamar County
  • Lanett
  • Lauderdale County
  • Lawrence County
  • Lee County
  • Leeds
  • Leesburg
  • Level Plains
  • Limestone County
  • Lincoln
  • Linden
  • Lineville
  • Lipscomb
  • Livingston
  • Locust Fork
  • Lowndes County
  • Loxley
  • Luverne
  • Macon County
  • Madison
  • Madison County
  • Malvern
  • Marbury
  • Marengo County
  • Margaret
  • Marion
  • Marion County
  • Marshall County
  • Meadowbrook
  • Meridianville
  • Midfield
  • Midland City
  • Mignon
  • Millbrook
  • Minor
  • Mobile
  • Mobile County
  • Monroe County
  • Monroeville
  • Montevallo
  • Montgomery
  • Montgomery County
  • Moody
  • Moores Mill
  • Morgan County
  • Morris
  • Moulton
  • Moundville
  • Mount Olive
  • Mount Vernon
  • Mountain Brook
  • Munford
  • Muscle Shoals
  • New Brockton
  • New Hope
  • New Market
  • Newton
  • North Bibb
  • Northport
  • Odenville
  • Ohatchee
  • Oneonta
  • Opelika
  • Opp
  • Orange Beach
  • Owens Cross Roads
  • Oxford
  • Ozark
  • Pelham
  • Pell City
  • Perry County
  • Phenix City
  • Phil Campbell
  • Pickens County
  • Piedmont
  • Pike County
  • Pike Road
  • Pine Level
  • Pinson
  • Pleasant Grove
  • Point Clear
  • Prattville
  • Priceville
  • Prichard
  • Ragland
  • Rainbow City
  • Rainsville
  • Randolph County
  • Red Bay
  • Redstone Arsenal
  • Reform
  • Rehobeth
  • Riverside
  • Roanoke
  • Robertsdale
  • Rock Creek
  • Rockford
  • Rogersville
  • Russell County
  • Russellville
  • Saint Clair County
  • Saks
  • Samson
  • Saraland
  • Sardis City
  • Satsuma
  • Scottsboro
  • Selma
  • Selmont-West Selmont
  • Semmes
  • Sheffield
  • Shelby
  • Shelby County
  • Shoal Creek
  • Slocomb
  • Smiths Station
  • Smoke Rise
  • Southside
  • Spanish Fort
  • Springville
  • Steele
  • Stevenson
  • Stewartville
  • Sulligent
  • Sumiton
  • Summerdale
  • Sumter County
  • Sylacauga
  • Sylvan Springs
  • Sylvania
  • Talladega
  • Talladega County
  • Tallapoosa County
  • Tallassee
  • Tarrant
  • Taylor
  • Theodore
  • Thomasville
  • Thorsby
  • Tillmans Corner
  • Town Creek
  • Trinity
  • Troy
  • Trussville
  • Tuscaloosa
  • Tuscaloosa County
  • Tuscumbia
  • Tuskegee
  • Underwood-Petersville
  • Union Springs
  • Uniontown
  • Valley
  • Valley Grande
  • Vance
  • Vandiver
  • Vernon
  • Vestavia Hills
  • Vincent
  • Walker County
  • Warrior
  • Washington County
  • Weaver
  • Webb
  • Wedowee
  • West Blocton
  • West End-Cobb Town
  • Westover
  • Wetumpka
  • Whitesboro
  • Wilcox County
  • Wilsonville
  • Winfield
  • Winston County
  • Woodstock
  • York

Commercial Loan FAQs in Alabama

Commercial interest rates in Alabama vary based on loan type, property type, loan-to-value, debt service coverage ratio, borrower strength, and market conditions. They range from approximately 5% to 12.95%.

Borrowers in Alabama can access Conventional, CMBS/Conduit, Insurance, FHA/HUD, USDA, Bridge, Construction, and SBA financing based on property type, leverage, and occupancy.

Commercial loan rates in Alabama depend on loan type, property cash flow, debt service coverage ratio, loan-to-value, borrower strength, and market conditions.

Yes. Owner-occupied financing is available in Alabama, including Conventional, Insurance, SBA, USDA, and selected agency programs when eligibility requirements are met.

Yes. Refinance options in Alabama include rate-and-term and cash-out structures, subject to underwriting, property performance, and lender program guidelines.

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