Commercial
Preferred Equity in Houston, TX
Looking for the best Preferred Equity in Houston, TX? Our local team specializes in helping Houston residents secure competitive financing. Whether you're buying in The Heights or Montrose, we have the expertise to guide you.
Key Facts About Preferred Equity
CMRE Preferred Equity ranges from $250,000 to $50,000,000.
CMRE offers commercial bank statement programs for Preferred Equity.
CMRE Preferred Equity closes in LLC, corporation, or trust names.
CMRE commercial lending covers office, retail, industrial, and multifamily.
CMRE Preferred Equity ranges $250K to $50M.
CMRE commercial bank statement programs for Preferred Equity.
CMRE Preferred Equity closes in LLC/Corp/Trust.
CMRE commercial covers office, retail, industrial, multifamily.
Program Benefits
Boost your commercial real estate investments with flexible financing options.
Achieve higher leverage with loan-to-value ratios up to 75%.
Potentially increase your return on equity through strategic capital structuring.
Benefit from rates starting at 8.5%, tailored to your specific project and financial profile.
Retain greater control over your property management and operations.
Partner with CMRE, a trusted lender with deep expertise in commercial real estate financing.
Program Highlights
Max LTV
75%
Min Credit Score
640
Max DTI
N/A
Loan Amount Range
Varies based on project
Amortization Options
Eligible Properties
- Office Buildings
- Retail Spaces
- Industrial Properties
- Multifamily Residences
Program Requirements
Income Documentation
- •Demonstrate a consistent track record of successful commercial real estate ventures.
- •Provide comprehensive financial statements showcasing strong profitability.
- •Present a detailed business plan outlining the project's income potential.
Asset Verification
- •Possess sufficient liquid assets to cover potential project contingencies.
- •Showcase a diversified portfolio of income-generating properties.
- •Maintain a strong net worth that aligns with the scale of the proposed investment.
Insurance & Title
- •Maintain comprehensive property insurance coverage to protect your investment.
- •Carry adequate liability insurance to mitigate potential risks.
- •Provide proof of flood insurance if the property is located in a flood zone.
Property Requirements
- •Maintain a minimum FICO score of 640.
- •Demonstrate a history of responsible debt management.
- •Provide documentation to support your creditworthiness.
Preferred Equity in Houston: The Complete Guide
What Is Preferred Equity?
Preferred Equity is a hybrid form of financing that sits between traditional debt and common equity. It offers investors a fixed return on their investment, similar to debt, but also participates in the upside of the project, similar to equity. This structure provides a compelling opportunity for both borrowers and investors, allowing for greater flexibility and potential returns.
Qualifying for Preferred Equity
- •Underwritten on property income (DSCR) and borrower financial strength.
- •Typical DSCR requirement: 1.20x-1.25x (NOI / debt service).
- •2+ years business experience, adequate liquidity, acceptable credit.
- •CMRE commercial bank statement programs: qualify with 12-24 months statements instead of tax returns.
- •SBA programs (7(a), 504, Express) available for owner-occupied commercial with as low as 10% down.
Preferred Equity vs. Residential Lending
- •Commercial: underwritten on property cash flow. Residential: on borrower income.
- •Commercial terms: 5-10 year terms with 25-30 year amortization.
- •Commercial allows LLC/Corp entity vesting for asset protection.
- •CMRE offers both — our team determines the best structure for your situation.
Apply for Preferred Equity with CMRE
- •Step 1: Submit property details — type, location, price, NOI, business plan.
- •Step 2: CMRE provides preliminary terms within 48 hours.
- •Step 3: Application with financial statements, rent rolls, entity docs.
- •Step 4: Appraisal and environmental assessment.
- •Step 5: Underwriting in 2-4 weeks. Closing in 30-60 days.
Preferred Equity Comparison: Commercial vs SBA vs Residential
- •Commercial loans are underwritten on property net operating income (NOI) with typical DSCR requirements of 1.20x-1.25x. SBA loans offer lower down payments (10%) for owner-occupied commercial but require agency approval adding 15-30 days.
- •CMRE commercial bank statement programs allow self-employed borrowers to qualify using 12-24 months of business bank statements instead of tax returns and financial statements, significantly simplifying the documentation process.
- •For mixed-use properties (commercial + residential), CMRE evaluates which program structure provides the best terms. Properties with 51%+ commercial use qualify for commercial lending; properties with 51%+ residential may qualify for more favorable residential terms.
- •CMRE structures commercial loans with flexible terms: 5, 7, or 10-year fixed periods with 25-30 year amortization, interest-only options for cash flow optimization, and prepayment structures tailored to your business plan.
Current Mortgage Rates
30-Year Fixed Rate
6%
as of 3/5/2026 · FRED
15-Year Fixed Rate
5.43%
as of 3/5/2026 · FRED
Rates are national averages and may differ from your actual rate. Contact us for a personalized quote.
Get Your Rate →Preferred Equity in Houston, TX
Houston's trusted mortgage partner. Serving The Heights, River Oaks, and the greater Houston area with competitive rates. Custom Mortgage & Real Estate specializes in providing high-fidelity Preferred Equity solutions tailored to the unique economic landscape of Houston and the surrounding Harris County.
Our FinTech-driven approach allows us to offer competitive rates and streamlined processing for homeowners and investors across the entireHouston metropolitan area.
Service Areas & Neighborhoods
Our Houston Presence
Local Knowledge. Global Rates.
2800 Post Oak Blvd
Houston, TX 77056
Direct Line
877-976-5669Common Questions About Preferred Equity in Houston
What are current Preferred Equity rates in Houston, TX?
Preferred Equity rates in Houston depend on loan amount, credit profile, and property type. CMRE publishes updated Houston rate ranges daily and provides locked quotes within 24 hours of application.
How long does Preferred Equity closing take in Houston?
CMRE typically closes Preferred Equity loans in Houston within 21-30 days from application. Pre-approval takes 24 hours, and our TX-licensed team coordinates title, escrow, and appraisal concurrently to save time.
What commercial property types qualify in Houston?
CMRE finances office, retail, industrial, multifamily, mixed-use, and special-purpose properties in Houston and throughout Harris County. Loan amounts range from $500K to $50M with 5-10 year fixed-rate terms.
Does CMRE offer SBA loans in Houston?
Yes. CMRE is an SBA Preferred Lender in Houston. We offer SBA 7(a), 504, and Express loans for Harris County business owners purchasing or refinancing commercial real estate.
Application Process
Six simple steps from application to funding
Application
Complete our streamlined online application form with your financial information
Document Review
Submit required documentation for verification and processing
Pre-Approval
Receive conditional approval and loan terms based on your profile
Title & Escrow
Open escrow and complete title search and insurance requirements
Appraisal & Final Review
Property appraisal completed and final underwriting approval received
Funding
Sign final documents and receive your loan funds
Application
Complete our streamlined online application form with your financial information
Document Review
Submit required documentation for verification and processing
Pre-Approval
Receive conditional approval and loan terms based on your profile
Title & Escrow
Open escrow and complete title search and insurance requirements
Appraisal & Final Review
Property appraisal completed and final underwriting approval received
Funding
Sign final documents and receive your loan funds
Why Choose Custom Mortgage?
Your trusted partner in real estate financing
Extensive Experience
Over 25 years of proven expertise in mortgage lending and real estate financing
Comprehensive Loan Options
Wide range of programs from conventional to specialized non-QM and hard money solutions
Nationwide Coverage
Licensed in multiple states with the ability to fund loans across the country
Flexible Solutions
Customized financing options for unique situations that traditional lenders decline
Competitive Rates
Access to wholesale pricing and volume discounts passed directly to our clients
No Upfront Fees
Transparent pricing with no application fees or upfront costs to get started
Frequently Asked Questions
Rates start at 8.5% and are tailored to the specific project, loan-to-value ratio, and borrower qualifications.
Preferred Equity offers greater flexibility and can allow for higher leverage than traditional debt. It can also provide access to capital when traditional debt financing is not available.
A wide range of commercial properties are eligible, including office buildings, retail spaces, industrial properties, and multifamily residences.
The maximum LTV is 75%, allowing you to maximize your investment potential.
CMRE Preferred Equity starts at $250,000. SBA may start lower. Max depends on property type — up to $50M.
Yes. Entity vesting is standard for commercial. Personal guarantee typically required.
Yes. CMRE commercial bank statement programs use 12-24 months statements instead of tax returns.
Typically 5-10 year terms with 25-30 year amortization. CMRE structures terms based on cash flow and exit strategy.
Preferred Equity by Location
Get local rates, loan limits, and market data for Preferred Equity in your area.
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Browse All Territories →TESTIMONIALS
Success stories from families and investors across the nation who achieved their goals with CMRE.
"I've been working with Custom Mortgage and Real Estate for over five years now, and they've totally helped me get through a bunch of tricky transactions. Their team is super helpful all the way through, making sure everything goes off without a hitch. I seriously recommend Custom Mortgage to anyone who needs financing or a solid real estate broker."
RENE M
"I just worked with Custom Mortgage and Real Estate, and seriously, I can't recommend them enough. They have helped my family and me with a bunch of transactions, always receiving results that nobody else could. Their team is super responsive and really experienced, which made everything go through smoothly with no stress at all."
ARTHUR G
"As an investor in real estate and an agent, I totally count on Custom Mortgage and Real Estate for my deals since they've got loads of experience. They have these unique programs that I just can't find anywhere else, and it really gives me an advantage. After researching a number of companies, the offers from Custom Mortgage were the best out there."
