Commercial Real Estate Financing

Best uses

• Buying the building you currently lease
• Purchasing a larger facility to expand
• Refinancing to improve terms or pull equity
• Construction or renovation of owner-occupied space

Typical borrower profile

• Established businesses ready to own their location
• Owners with down payment funds or existing equity
• Companies with cash flow to support the mortgage

Potential qualification factors

Every lender sets its own criteria, and no factor guarantees or blocks approval on its own. Commonly reviewed items include:

• Business cash flow and financials
• Property type, condition, and value
• Down payment or equity
• Owner credit profile
• Occupancy percentage for owner-occupied programs

Documentation to have ready

• Government-issued ID
• 3 to 6 months of business bank statements
• Basic business information (entity, EIN, time in business)
• Voided business check for funding
• Business and personal tax returns
• Profit and loss statement and balance sheet
• Business debt schedule
• Purchase contract or current mortgage statement
• Property details, rent rolls if partially leased
• Appraisal ordered during underwriting

Benefits

• Build equity instead of paying rent
• SBA 504 and 7(a) programs can lower down payments for qualifying owners
• Long amortizations keep payments manageable
• Potential appreciation over time

Common challenges to plan for

• Down payments and closing costs require real capital
• Appraisal and underwriting extend timelines
• Property ownership adds maintenance responsibility

Frequently asked questions