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Owner-Occupied Commercial Real Estate

Financing for businesses buying the space they operate from, instead of leasing — often with better terms than investment property, since the underwriting includes your business's financials.

A loan to buy a commercial property your own business will trade from.

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Who it's for

Business owners tired of paying rent who want to own their premises instead.

How it works

  1. 1Your business must typically occupy a majority of the space.
  2. 2Because you occupy it, SBA programmes often apply — usually the cheapest route.
  3. 3Deposits can be lower than for pure investment property.
  4. 4Your rent becomes a mortgage payment building your own equity.

What to watch out for

Owning ties your business to a location. If you might outgrow or need to move within a few years, renting can be the better commercial decision.

At a glance

  • For businesses occupying at least 51% of the property
  • Often better terms than investment property financing
  • Underwriting includes your business's financials
  • Can often be paired with SBA financing

Common questions

How much of the building must I occupy?

SBA rules generally require you to occupy at least 51% of an existing building. The rest can be let out.

Owner-Occupied Commercial Real Estate

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