Owner-Occupied Commercial Real Estate Loans
Own the property your business operates from with owner-occupied commercial real estate loans. Up to 90% financing via SBA 504, 25-year amortization, and below-market fixed rates for qualifying small businesses.
About Owner-Occupied Loans
Owner-occupied commercial real estate loans are designed for businesses that want to purchase or refinance the building they operate from. These loans qualify for the most favorable financing structures available to small businesses — including SBA 504 loans with 10% down payment and below-market fixed rates, or conventional bank loans up to 80% LTV. To qualify, your business must occupy at least 51% of the usable square footage and actively produce goods or services (not a passive real estate holding company).
Key Features & Benefits
Everything you need to know about what makes Owner-Occupied financing a smart choice.
Up to 90% Financing
SBA 504 structure enables just 10% down payment on owner-occupied CRE purchases.
25-Year Fixed Amortization
Long amortization schedules lower monthly payments and improve DSCR.
Below-Market Rates
Owner-occupied status qualifies you for the best rates in commercial real estate lending.
Build Equity vs. Pay Rent
Mortgage payments build equity in an appreciating asset instead of disappearing as rent expense.
Tax Advantages
Deduct mortgage interest, property taxes, and depreciation — significant tax savings vs. leasing.
Property Appreciation
Commercial real estate historically appreciates 3–6% annually, adding a second revenue stream to your business.
Who Uses Owner-Occupied Financing
- Purchasing a building for your operating business
- Ground-up construction of a new headquarters
- Refinancing existing owner-occupied real estate
- Medical, dental, or veterinary practice property
- Manufacturing, warehouse, or industrial facility
- Retail storefront or restaurant property
- Professional office for law firms, CPAs, engineers
- Auto repair, service, or light manufacturing buildings
Qualifications & Eligibility
- Your business occupies at least 51% of usable square footage
- Active operating business producing goods/services (not a holding co.)
- For SBA 504: business net worth under $15M and net income under $5M
- Minimum 2 years in business preferred
- Owner credit score 680+ preferred
- DSCR of 1.25x+ based on business cash flow
- Personal guarantee from owners with 20%+ equity
How It Works
Our streamlined process gets you from application to funding quickly.
Property & Business Review
We review the property, your business financials, and identify the optimal loan structure (SBA 504 vs. conventional).
Pre-Qualification
Receive a pre-qualification letter to strengthen your purchase offer, typically within 48 hours.
Appraisal & Environmental
Order commercial appraisal and Phase I environmental assessment (required on most CRE loans).
Underwriting
Lender reviews property value, business cash flow, collateral, and borrower credit — typically 30–45 days.
Closing & Funding
Sign closing documents and fund — total timeline 60–90 days from application.
Why Choose Growth Fund Partners for Owner-Occupied
Frequently Asked Questions
Common questions about Owner-Occupied loans answered.
What qualifies as "owner-occupied" commercial real estate?
Your operating business must occupy at least 51% of the usable square footage. The remaining space can be leased to tenants without disqualifying owner-occupied status.
How does owner-occupied differ from investment property?
Owner-occupied means your business operates from the property (51%+ occupancy). Investment property is purchased purely to lease to tenants. Owner-occupied gets better financing terms.
Can I use SBA 504 for owner-occupied CRE?
Yes — SBA 504 is specifically designed for owner-occupied CRE and offers the best terms: 10% down, 25-year fixed rates, and below-market pricing.
What if my business is new or has weak credit?
Startups and weaker credit profiles can still qualify via SBA 7(a) with stronger collateral coverage or conventional loans with larger down payments (25–30%).
Related Loan Programs
Explore similar financing options that might fit your needs.
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