What is the minimum LTV requirement for obtaining a commercial loan?

The minimum loan-to-value (LTV) requirement for obtaining a commercial loan typically falls within the range of 65-75% LTV, which translates to needing 25-35% equity from the borrower. This range is established based on the risk profile of commercial properties, which often entails higher risks compared to residential properties due to factors like fluctuating market conditions, longer vacancy periods, and the nature of tenants.

Having an equity stake of 25-35% means that lenders are ensuring that borrowers have a significant personal investment in the property, which can mitigate risks. This equity cushion helps protect the lender's interests if the property were to decrease in value or if the borrower defaulted on the loan. The commercial lending market generally requires stricter equity positions than residential lending, which is reflected in the answer choice provided.

While other options may present different ranges, the indicated choice accurately reflects the common practices in the commercial lending landscape, aligning with underwriting guidelines and risk assessments typical within the industry.