Question 1

What is a credit union CRE loan?

Accepted Answer

Credit unions are member-owned institutions that lend on CRE. They offer competitive rates for smaller deals, typically $500K-$5M. Credit union CRE loans are portfolio products with relationship-based pricing.

Question 2

What rates do credit unions offer?

Accepted Answer

Credit unions often beat bank rates by 25-50bps because they return profits to members. Fixed rates on 5-year terms run 5.5-7.0%. They're competitive on smaller deals where banks charge premium pricing.

Question 3

What are credit union CRE loan limits?

Accepted Answer

Federal regulations cap credit union member business loans at 12.25% of total assets. This means most credit unions max out at $5M-$15M per loan. Larger credit unions can go higher. Participation loans with other credit unions extend capacity.

Question 4

What property types do credit unions finance?

Accepted Answer

Credit unions finance multifamily, mixed-use, retail, office, and owner-occupied commercial. They tend to focus on their local market within a 50-100 mile radius of branches. Some specialize in specific property types like medical office.

Question 5

How do credit unions compare to banks for CRE?

Accepted Answer

Credit unions typically offer lower rates and fees than banks. The trade-off is smaller loan limits and less flexibility on complex structures. For deals under $5M in the credit union's market, they're often the best-priced option.

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