Owner and Non-Owner Occupied Loans

Under the OCC’s definition, a property is owner-occupied when rental income from third-party, nonaffiliated tenants is less than 50% of the loan’s source of repayment. SBA programs set their own occupancy rules: for an SBA 504 loan or 7(a) loan on an existing building, the business must occupy at least 51% of the rentable space, and at least 60% of a newly constructed building. The 504 program provides long-term, fixed rate financing for major fixed assets.

Our conventional programs finance both. Owner-occupied loans run from $250,000 to $15,000,000 for office, commercial condo, industrial, warehouse, retail and medical properties. Non-owner occupied loans run from $250,000 to $25,000,000 and add self-storage and mixed-use properties. Both lend at 60% to 75% LTV with 3-, 5- and 30-year fixed terms, amortizations up to 30 years and a minimum credit score of 650; land is not financed.

For apartment buildings of five or more units, see multifamily property loans; for 1–4 unit rentals, see residential investment property financing. If a purchase must close before long-term financing is ready, a commercial real estate bridge loan can provide short-term funding. See all commercial real estate loans.