Commercial real estate loans include loans secured by liens on condominiums, leaseholds, cooperatives,
forest tracts, land sales contracts, construction project loans, and in the few states where they are considered real
property, oil and other types of mineral rights. National banks may make, arrange, purchase, or sell loans or extensions of credit secured by liens on interests in real estate.

Loans secured by real estate can be divided into two categories based on the source of repayment: credit-based loans
and project financing. Credit-based loans are loans secured by real estate that will be repaid from the borrower's
business operations or personal assets. Although the primary collateral for the loan is real estate, the real estate is not
the source of repayment. In many instances, these loans are used to finance the acquisition of an owner-occupied
business premises that has an economic life similar to the term of the loan. In other cases, they are term loans used for other business purposes, such as working capital. In both cases, however, repayment is expected from the cash flow of the business rather than from the underlying real estate.

Project financing also relies on cash flow, it is cash flow originating in the underlying real estate collateral. Project financing is repayable primarily from income currently being produced (or anticipated) from existing or future improvements to real estate. The credit capacity of the borrower and any guarantees are secondary sources of repayment.

The borrower for commercial real estate loan may take any one of several legal forms to hold title to the real estate. Corporations, joint ventures, real estate investment trusts, or partnerships where the general partner is a Subchapter S corporation are the most popular forms. They allow investors to maximize tax benefits and limit personal liability.