Reviewed by Craig Hoebing, AZ Commercial Mortgage Banker CMB-1047342 · Updated October 2026
Commercial loan rates and calculator — dated public indexes and a sizing tool that uses numbers you type. Not a quote.
What this guide is for
Sponsors searching for a commercial mortgage in Arizona usually want one person who can say which box the building belongs in. This page is that map. It walks through lender types, the three coverage tests, the process, a realistic timeline, and the costs that are not the coupon. Older addresses for the shorter senior-debt page now land here.
Capital Market Funds LLC is an Arizona commercial mortgage banker, license CMB-1047342. Craig Hoebing, NMLS 1445066, works from 7373 E Doubletree Ranch Rd #255, Scottsdale, AZ 85258. The homepage keeps the line Scottsdale commercial mortgage banker because that is the license and the city of the office. Phoenix, Tucson, and the East Valley are coverage from that desk, not extra street addresses.
Nothing here is a commitment or an offer to lend. Published closings stay on the transactions page and on the city page the tombstone names. This guide does not add a statewide total.
Lender types, without a ranking
Banks and credit unions hold loans on their own books. They often want recourse, a relationship, and a leverage point that is tighter than a cash-out conduit loan. Life companies buy long permanent debt on calm, leased property and often lock a rate at application. CMBS pools loans for bond buyers. Prepayment is usually yield maintenance or defeasance, which is why selling one building out of a blanket loan is hard. Agency executions — Fannie Mae and Freddie Mac — are for multifamily that fits a program. HUD/FHA is for the multifamily, seniors, and healthcare paths the department publishes. Bridge and debt-fund capital is for a property that is not permanent yet.
Those are types, not a scoreboard. A life company that wants a low loan-to-value is not competing with a bridge lender that will fund a renovation plan. Putting them in one table is how you see the difference. Sorting them by who is best would be a ranking, and this site does not publish rankings. The table below is the same structural comparison used on the lender-type page: leverage, coverage, amortization, recourse, and a rough closing time. It has no interest rates.
Capital Market Funds arranges loans into these types. It is not a bank, not a life company, not a CMBS issuer, not an SBA lender, not a certified development company, and not a Fannie Mae DUS lender. Agency and HUD files are placed with the party that executes the program. We do not claim MAP or LEAN approval.
| Lender type | LTV range | DSCR | Amortization | Recourse | Typical closing time |
|---|---|---|---|---|---|
| Bank | Often about 65–75% on stabilized income property | Often 1.25x or higher | Commonly 20–25 years, with a 5- or 10-year term | Frequently full or partial recourse | Often about 30–60 days when the file is complete |
| Credit union | Similar to banks, sometimes tighter on a single asset | Often 1.25x or higher | Similar to a bank hold, set by that credit union | Often recourse, sometimes with a deposit relationship | Often about 45–75 days |
| Life company | Often about 50–65% on core property | Often about 1.25x–1.50x | Often 15–30 years; some loans balloon | Often non-recourse with carve-outs on a clean asset | Often about 45–90 days; lock is commonly at application |
| CMBS | Often up to about 75% when the cash flow supports it | Often around 1.25x | Often 25–30 year amortization, 5–10 year term | Typically non-recourse with standard carve-outs | Often about 60–90 days |
| Agency (multifamily) | Conventional multifamily often discussed up to the low-80% area | Often around 1.25x, with program exceptions | Often up to 30 years | Generally non-recourse with carve-outs | Often about 45–90 days |
| HUD / FHA | Statutory maximums are published by HUD and are often higher than a bank | HUD publishes program minimums; they are not set on this page | 223(f) can run to 35 years | Generally non-recourse with program carve-outs | Often several months, because the HUD process is the calendar |
| Bridge / debt fund | Often underwritten to cost or as-is value, commonly below a permanent LTV | May be below 1.0x, or interest-only with a business plan | Usually interest-only for 1–3 years | Varies: carve-outs only, partial, or full | Often about 2–6 weeks |
| SBA 504 (project, not one loan) | Borrower injection, a bank first, and a CDC debenture — not a single LTV | The bank and the CDC each underwrite coverage | Debenture is 10, 20, or 25 years; the bank note is separate | Owners of 20% or more generally guaranty the 504 side | Often about 60–120 days |
| Mezzanine / preferred equity | Sits behind senior debt; the combined stack is the point | Looks at cash flow after the senior loan, or at accrued yield | Often co-terminus with the senior loan, or shorter | Usually a pledge of equity, not a second mortgage in every deal | Often about 45–90 days after the senior loan is identified |
Typical structural ranges, not quotes. No interest rates. Capital sources change leverage, coverage, recourse, and timing by asset. Capital Market Funds arranges financing and is not a lender, a bank, a CDC, or a Fannie Mae DUS lender.
DSCR, LTV, and debt yield
Debt service coverage is net operating income divided by the annual loan payment. If the property produces $100 of NOI and the loan requires $80 of debt service, coverage is 1.25 times. That example is arithmetic, not a market. Lenders set their own minimum, and they adjust NOI for vacancy, management, taxes, and insurance before they do the division. The sponsor's spreadsheet and the lender's underwriting NOI are rarely the same number.
Loan-to-value is the loan divided by the property value. Value might be an appraisal, a contract price, or a cap rate applied to NOI. The calculator uses the value you type, or NOI divided by a cap rate you type. It does not appraise the building. A high loan-to-value with thin coverage is still a weak loan. A low loan-to-value with coverage that fails the payment test is also a weak loan. Both tests have to pass.
Debt yield is NOI divided by the loan amount. It ignores the interest rate and the amortization, which is why lenders use it when coupons are low enough to hide a large balance. If you enter a minimum debt yield, the calculator treats it as a third ceiling and the smallest of the three limits binds. Leave it blank and that test is skipped. None of these formulas is a quote from a capital source.
Terms sponsors should name out loud
Term is how long the loan lasts before a balloon or a renewal. Amortization is the schedule that pays principal down. A 25-year amortization on a 10-year term means the payment is calculated as if the loan lasted 25 years, and the unpaid balance is due at year 10. Interest-only means the payment is interest and the principal stays outstanding until the end, or until the interest-only period ends. Those are different payments. The calculator has a switch for it.
Recourse is whether a person stands behind the loan beyond the property. Banks often want a guaranty. Life companies, CMBS, and agency loans are often non-recourse with carve-outs for fraud, bankruptcy, and unpaid taxes. Non-recourse is a document, not a mood. Prepayment is the other document people skip: lockout, a step-down schedule, yield maintenance, or defeasance. The prepayment estimator illustrates those patterns from numbers you type. The note controls the real figure.
Rate structure is an index plus a spread, or a fixed coupon the source will lock. This guide does not print either number. Dated public indexes — 30-day Average SOFR, Treasury par yields, and Prime Rate — are on the rates and calculator page, with sources. You add a spread or replace the rate. The site does not suggest a market spread.
Process, from the first call to a closing
The first conversation is the address, the property type, and the job: purchase, refinance, or a plan that is not stabilized. A rent roll or unit mix and a trailing statement are enough to see which source is even plausible. If a loan is already on the property, the payoff, the prepay, and the maturity come before anyone talks about a new coupon. A refinance that ignores yield maintenance is not a plan.
Craig then says which box fits, or that none of them do. Packaging is the rent roll, the operating history, the sponsorship, the sources and uses, and the third-party reports the source will require. An application to a life company, a bank, an agency lender, or a HUD-approved lender is that source's application. The form on this website is a request to talk. It is not an application.
A term sheet, when a source issues one, is still conditional. Appraisal, environmental, title, survey, insurance, and organizational documents follow. Rate lock, if it exists, is a separate agreement with a deadline. Closing is the funding date, not the day the term sheet arrived. One originator stays on the file through that sequence. The lender of record is the capital source.
Timeline
A complete bank file is often measured in weeks. Life company and CMBS files are often longer because of third parties and, for CMBS, the pooling calendar. Agency multifamily sits in a similar band when the asset is clean, and longer when the waiver or the repair escrow is the issue. HUD is the process that takes months, because the department's review is the calendar. Bridge can be faster when the story is short and the documents are already in hand. The comparison table states those as typical ranges, not promises. A missing rent roll adds more time than the capital source's logo does.
Purchase contracts with a hard outside date should be matched to a source that can live with that date. Starting a HUD file against a 30-day close is how sponsors lose earnest money. Say the date on the first call. If the honest answer is that the date cannot be met, that answer is more useful than an optimistic term sheet.
Costs that are not the interest rate
Third parties show up on almost every permanent loan: appraisal, a property condition report, a Phase I environmental site assessment, sometimes a survey, title insurance, and lender's counsel. Borrower counsel is separate. Escrows for taxes, insurance, and replacements are reserves, not fees, but they are cash at closing. Deposits for the application and for the rate lock, when a source requires them, are that source's requirement.
Capital Market Funds does not publish a fee schedule or a percentage on this site. If the firm is paid for arranging a file, that compensation is disclosed in the engagement for that file, not in a statewide claim. Do not treat the absence of a number here as a promise that the work is free, and do not treat a number you heard somewhere else as our schedule.
Prepayment on the existing loan is a cost of refinancing even though it is not a new-loan fee. Estimate it before you compare coupons. Insurance that fails the lender's exhibit is another closing cost people discover late. The insurance note describes the usual conditions. We are not an insurance producer.
Where Arizona files actually sit
Maricopa County is the center of the practice: Phoenix, Scottsdale, Mesa, Chandler, Tempe, Gilbert, Glendale, and Peoria. Each city page now uses commercial mortgage and commercial debt in the title. Closings are cited only on the page the tombstone names. Tucson is Pima County, originated from the same Scottsdale desk, and it is not a Maricopa card.
The license page is the Arizona commercial mortgage banker. Broker searches for Phoenix and Scottsdale land on those city pages and on that license page. They are the same originator. If the question is which layer of the stack you need — senior, bridge, construction, mezzanine, SBA, HUD, or agency — read the commercial debt guide next. Who provides that capital, as a market rather than a single loan, is the Arizona capital markets guide.
The lender is the source, not this office
On an Arizona commercial mortgage the lender is whoever holds or sells the loan: an executing agency lender, a HUD-approved lender, a life-company correspondent, a CMBS issuer, a bank, or a private bridge investor. Capital Market Funds arranges and places the request. It is not Fannie Mae, not the bank, and not a Fannie Mae DUS lender. The Arizona license, CMB-1047342, is a commercial mortgage banker license.
Two Capital Market Funds closings, and a Maricopa sponsor
Two 2026 cards are Capital Market Funds closings, not prior-firm originations. One is value-add multifamily in Tucson, $28,000,000, life company, 80% LTC, interest only during construction. The other is a six-bay European auto repair and tire-care property, $3,000,000, with a long-term lease and options and no prepayment penalty. The auto-repair card does not name a city. Older Arizona cards are labeled as prior-firm originations. Maricopa sponsors use the same Scottsdale desk. Cities in the county have their own pages. Tucson is Pima County and keeps the multifamily card.
Before a term sheet, Craig needs the address, the property type, photos or a rent roll, and the purpose: acquisition, refinance, or a transitional plan. Call (480) 495-8072 or use the form. That contact is a conversation. It is not an application and not a commitment to lend.
Questions
- Does this Arizona commercial mortgage guide quote rates?
- No. Dated public indexes and a calculator that uses your inputs are on the rates and calculator page. A term sheet is a conversation about a specific asset. This guide explains the tests, not a coupon.
- Is Capital Market Funds the lender?
- No. The firm arranges financing. The lender is the bank, life company, CMBS issuer, agency lender, HUD-approved lender, or private investor that approves the loan. Arizona license CMB-1047342. NMLS 1445066.
- Where should a Phoenix or Scottsdale sponsor start?
- On the city page if you want the local reading, or on this guide if you want the statewide mechanics. Both reach Craig Hoebing at the Scottsdale office. The form is a request to talk, not an application.