JP Morgan Chase is a nationwide lender that funds a variety of commercial real estate projects like multifamily, industrial, office, retail, and mixed-use properties. Its fixed and adjustable-rate loan programs are best for real estate investors who need loans from $1 million to more than $25 million.
JP Morgan Chase Pros and Cons
Funds a variety of commercial real estate projects
For prime borrowers only
Can fund up to more than $25 million
No additional collateral requirement
Funding can take up to 45 days
Who JP Morgan Chase Is Best For
- Investors of multifamily properties: JP Morgan Chase prides itself on being one of the best multifamily lenders in the country. It offers competitive rates and fees as well as a reliable process to get a loan for a five or more unit apartment building.
- Small business real estate owners and commercial investors: JP Morgan is also a good fit for small business real estate owners and commercial investors who need financing for their office, mixed-use, industrial and retail properties.
JP Morgan Chase Costs and Terms
Commercial Real Estate Loan
$500,000 to more than $25 million
Annual Percentage Rate (APR) Range
5% to 9%
Loan-to-Value (LTV) Ratio
Up to 80%
1% to 2% of loan amount
1% to 3% of amount borrowed
One year to 10 years
JP Morgan Chase offers commercial real estate loans amounting from $500,000 to more than $25 million with either fixed or adjustable interest rate that ranges between 5% to 9%. It typically funds up to 80% of the value of the property with repayment terms of one to 10 years. Other fees to expect are closing fees that range from 1% to 2% and lender fees of 1% to 3% of the loan amount. You can expect funding within 45 days.
Do You Qualify for JP Morgan Chase Financing?
Commercial Real Estate Loan
Minimum Credit Score
Time in Business
Minimum Debt Service Coverage Ratio (DSCR)
No additional collateral required
JP Morgan Chase is best for prime borrowers with credit scores of 670 or more. To qualify for a commercial real estate loan with JP Morgan Chase, you should have at least two years of operating history and have a minimum DSCR of 1.25. Also, the property should have an owner-occupancy rate of 51%. There is no additional collateral requirement.
JP Morgan Chase Application Process
JP Morgan Chase offers a streamlined application process for its commercial real estate loans. You can start by filling out the application form found on its website, where you will need to provide information about the property you need to finance. To apply for an apartment loan, you need to submit at least two years of operating history and your recent rent roll.
JP Morgan Chase will then issue you a written quote―also known as the “letter of interest”―and an experienced client manager will walk you through the whole process. After a letter of interest is accepted, JP Morgan Chase will require an application deposit to process the loan and appraisal. Then, you will be asked to provide an application, personal and financial statements, scheduled real estate, and entity documents. Tax returns are not required.
JP Morgan Chase Alternatives 2020
Online platform that connects you with SBA 7a commercial real estate loan providers
Businesses as young as six months that need quick loan approval
Businesses in need of short-term loan to finance renovation or expansion to a new location
Up to $5 million
Up to several million dollars
$5,000 to $250,000
Starting at 5%
Up to 25 years
Up to 12 months
Minimum Credit Score
At least 620 to 650
What Business Owners Should Know About JP Morgan Chase
- There’s an apartment loan process cost: An apartment loan can cost $2,000 or 12.5 basis points of loan amount, whichever is greater.
- You can get an early rate lock on your loan: Early rate lock is available through Chase and can be applied to the loan fee or other loan costs or refunded at closing.
- JP Morgan Chase is a portfolio lender: JP Morgan Chase holds its loans on its balance sheet. JP Morgan Chase is also a Fannie Mae DUS® lender.
Most Helpful JP Morgan Chase Reviews
Most of JP Morgan Chase reviews available online are a mixture of positive and negative ratings. Customers who left positive reviews are happy with JP Morgan Chase’s customer service and its online banking tools. Clients who left negative ratings are unhappy with its unorganized document processing and lack of transparency when it comes to rates.
Customer-focused and tech-savvy
A customer who has been banking with Chase for more than three years left a positive review on Trustpilot, saying that he was very pleased with everything from the branch customer service to the functionalities and tools offered by its online banking. The client mentioned that there was a significant issue with his business trust account upon opening, but Chase was able to fix it immediately without issue.
Lack of transparency
A client who left a negative review on Trustpilot is disappointed because Chase changed his mortgage terms at the last minute. He received a mortgage commitment letter with the terms offered. However, one week before the closing, Chase called him and pulled a classic bait-and-switch claiming that he had a bad debt-to-income (DTI) ratio, and his wife’s lower credit score resulted in less favorable mortgage terms. He said Chase offered no further explanation or documentation to support its claim of a bad DTI ratio.
JP Morgan Chase Frequently Asked Questions (FAQs)
What can Chase Commercial Term Lending do for my business?
JP Morgan Chase’s commercial term lending provides solutions for apartment building owners and commercial real estate property owners relating to stabilized industrial, office, and retail properties. JP Morgan Chase’s team of client managers have extensive experience in apartment lending and a deep understanding of the local market.
How do I contact someone about a term loan on an industrial, office, or retail property?
For new clients, you can find a client manager near you or call 866-862-9232. For existing clients, you may contact JP Morgan Chase’s customer care at 877-344-3080.
Can I get a fixed-rate or an adjustable-rate commercial property loan?
JP Morgan Chase offers both fixed-rate and adjustable-rate loan programs:
- Initial fixed rate for three, five, seven or 10 years, then adjustable for the remaining term
- 15-year fixed
- Six-month London Inter-bank Offered Rate (LIBOR) arm
- Fannie Mae® DUS®: Fixed rate for 10, 12 or 15 years with up to a 30-year amortization
JP Morgan Chase offers commercial real estate loans to finance a variety of projects like multifamily, industrial, office, retail, and mixed-use properties. It is best for investors and small business real estate owners who need funding between $500,000 to more than $25 million. However, JP Morgan Chase caters mostly to prime borrowers only.
If you are still not sure if JP Morgan Chase is right for you, then this article on the top commercial real estate loan providers is a review of our top choices. In this guide, we compared the top providers according to their terms, costs, and qualifications.