Loan programs.

Conventional commercial lending — non-government-guaranteed bank debt — covers the largest dollar volume in CRE financing. Regional banks, money-center banks, community banks, and specialty CRE lenders collectively originate the vast majority of new commercial real estate debt. Term loans, mini-perm structures, owner-occupied loans, and construction-to-permanent products all fall under the conventional umbrella.

Conventional bank lending is governed not by a single SOP but by OCC and FDIC examination expectations, internal credit policy at each institution, and the borrower's relationship history. The December 5, 2025 rescission of the 2013 Interagency Leveraged Lending Guidance signaled lighter examiner posture without relaxing documentation expectations. Feasibility studies are required at lender discretion — typically driven by deal size, asset class, transitional status (lease-up, value-add, conversion), or sponsor-credit considerations.

DSCR thresholds run 1.20x to 1.35x; LTV typically 65 to 75 percent at term, lower for construction and bridge structures. The bankable framework satisfies bank examiner expectations across deal sizes and asset classes.

Commercial Mortgage-Backed Securities (CMBS) financing operates through two structural variants: conduit pools (multiple loans aggregated into a single rated securitization) and Single-Asset Single-Borrower (SASB, one large loan rated independently). Conduit deals typically run $5M to $75M per loan; SASB transactions start at $75M and frequently exceed $500M for trophy assets, hyperscale data centers, and institutional industrial portfolios.

CMBS underwriting is governed by rating agency methodology — KBRA Property Evaluation Methodology (updated January 9, 2026), S&P Global CMBS Property Evaluation Methodology Guidance, Fitch U.S. and Canadian Multiborrower Rating Criteria, Moody's Approach, and DBRS Morningstar North American CMBS methodology. B-piece buyers (Rialto, KKR, Eightfold, Prime Finance, Ellington) gate the bottom of the capital stack and effectively decide which loans clear into the rated pool.

DSCR thresholds typically 1.20x to 1.35x for conduit, 1.15x to 1.30x for SASB on premium assets. Debt yield (the post-2008 second filter) runs 8 to 10 percent for conduit, 7 to 9 percent for SASB. The bankable framework's CMBS scope is built to KBRA-aligned methodology and survives B-piece buyer review.

Life-insurance companies hold approximately $704 billion in CRE and multifamily debt as of 2025-2026 per ACLI commercial mortgage commitments data, making them collectively one of the largest CRE lender categories. Life-cos hold loans on balance sheet for 20 to 30 years, which drives a structurally different underwriting posture from CMBS securitization. PGIM, MetLife, Northwestern Mutual, Principal, MassMutual, Pacific Life, Symetra, and TIAA-Nuveen each operate distinct allocation strategies — PGIM heavy in industrial, MetLife diversified institutional, Northwestern Mutual industrial and multifamily.

Life-co underwriting runs tighter than CMBS on DSCR (1.30x to 1.50x) and LTV (55 to 65 percent), and adds debt yield as a hard threshold (8 to 10 percent). Life-cos require feasibility studies for construction, lease-up bridge financing, hospitality, senior housing, manufactured housing, student housing, and tax-credit affordable. For stabilized permanent loans on income property, MAI appraisal often carries the market analysis without standalone feasibility commission.

The bankable framework's life-co scope emphasizes tenant credit analysis, NOI durability under lease rollover scenarios, and stress testing aligned to each life-co's published underwriting parameters.

Bank construction lending in 2026 operates predominantly through mini-perm 3-to-5-year structures, with construction loans rolling into either bank-held mini-perm or being taken out by life-co, CMBS, or agency multifamily permanent debt at stabilization. Post-SVB regulatory scrutiny and the December 5, 2025 rescission of the 2013 Interagency Leveraged Lending Guidance have produced a market where banks are selectively returning to construction lending — depository CRE originations grew 74 percent year-over-year in Q4 2025 — with tighter documentation expectations even as examiner posture lightens.

Construction loan underwriting focuses on as-stabilized value, construction budget validation, GMP contract review, lease-up assumptions, and exit-takeout assumption credibility. Permanent loan underwriting at takeout focuses on stabilized NOI, debt yield, and DSCR at the new permanent rate. A feasibility study scoped to permanent-lender depth from the outset typically satisfies both lenders.

The bankable framework's construction lending scope includes lease-up modeling stress-tested for slow-up scenarios, exit cap rate sensitivity, and refinance-risk profiling for mini-perm structures.

Fannie Mae's Delegated Underwriting and Servicing (DUS) program and Freddie Mac's Optigo platform together govern the largest share of US multifamily debt. FHFA 2026 caps total $176 billion ($88 billion per Enterprise), up from $146 billion in 2025. Mission-driven set-asides (workforce housing, affordable, manufactured housing) count toward the cap; market-rate allocation fills the balance.

Fannie DUS lender designations are governed by Form 4165 capital tests (updated August 2024); active DUS lenders include Walker & Dunlop, Berkadia, Greystone, JLL, CBRE, Newmark, Capital One, KeyBank, PNC, and Wells Fargo. Freddie Optigo segments into Small Balance Loan (SBL, $1M to $7.5M), Conventional ($7.5M+), and Targeted Affordable Housing (TAH for LIHTC and bond deals). Market study scope for agency multifamily increasingly aligns with NCHMA Model Content Standards (September 2025 update), particularly for affordable and workforce housing.

The bankable framework's agency scope satisfies Fannie DUS and Freddie Optigo simultaneously and converts cleanly to HUD/FHA scope when the deal pivots to MAP financing.

HUD/FHA multifamily and healthcare programs operate through the Multifamily Accelerated Processing (MAP) framework for 221(d)(4) construction and 223(f) refinance, and through the LEAN healthcare process for 232 (skilled nursing, assisted living, board-and-care). MAP Guide March 2021 provides the base regulatory framework, layered with Mortgagee Letters through 2026. The MIP reduction effective October 1, 2025 cut to 0.25 percent represents a meaningful pricing tailwind for HUD-financed multifamily and healthcare deals.

Market study requirements for 221(d)(4) include full market study at pre-application AND firm commitment; 223(f) requires abbreviated market study; 232 LEAN runs through HUD Office of Healthcare Programs with separate seniors-housing-focused expectations. Required HUD forms include 92273 (rent comparables), 92274 (operating expenses), and 92264 (project income/appraisal). NCHMA Model Content Standards alignment is increasingly expected.

The bankable framework's HUD/FHA scope is built to MAP Guide expectations and incorporates NCHMA-aligned market analysis where applicable.

Debt funds and bridge lenders fill the transitional capital gap between bank construction debt and stabilized permanent financing. Active debt funds in 2026 include Blackstone Real Estate Debt Strategies, Brookfield, KKR Real Estate Finance, Starwood Property Trust, Ares, Mesa West, Pacific Western, Bain Capital, MSD Partners, Argentic, and Greystone Capital. Bridge structures typically run 75 to 80 percent loan-to-cost, floating rate at SOFR plus 350 to 650 basis points, 2 to 3 year terms with extension options.

Debt fund underwriting focuses on as-stabilized value, capex budget review, lease-up timeline, and exit-takeout assumption credibility. Most bridge structures contemplate agency multifamily or CMBS conduit takeout at stabilization. Feasibility study scope must address both the bridge underwriting and the contemplated takeout — the bankable framework's debt fund scope is structured for that dual lens.

Bridge financing is most active in transitional multifamily (value-add lease-up rebuild), data center development, and industrial repositioning. Hospitality bridge has thinned post-2024.

Mezzanine debt and preferred equity fill the capital stack gap between senior debt (typically 60 to 70 percent LTV) and sponsor equity (typically 10 to 20 percent), enabling 80 to 90 percent total leverage on deals where senior debt cannot reach. Mezzanine is subordinated debt secured by ownership-interest pledge with intercreditor agreement governing senior-mezz dynamics; preferred equity is structured as equity participation with preferred return waterfall, sometimes "hard pref" (debt-like) or "soft pref" (equity-like).

Pricing typically runs 10 to 15 percent all-in for mezzanine, 10 to 14 percent preferred return for hard pref. Senior lenders increasingly accept mezz and pref behind them with intercreditor restrictions; SBA disallows mezz or pref behind 504 financing; bank construction lenders vary in their acceptance.

The bankable framework models all-in cost of capital including mezzanine or preferred equity layers, and surfaces the cure-rights and intercreditor structure where applicable.