Owner Occupied Commercial Loans are defined as loans for properties where the owner a minimum of 51% of the property’s space.  It is also generally considered to be owner occupied if it is occupied by a business that has the same ownership of a holding company that owns the property.

For example,  if Jack owns 100% of an frame shop and then he owns 51% or greater of a holding company called Jack’s real estate and that holding company owns the real estate the frame shop occupies that would generally be classified as owner occupied as well.

There are many different variations of this scenario that will be classified as owner occupied commercial real estate.  The point here is that they will all qualify for one type of commercial loan or another.
Examples of a typical borrower looking for an owner occupied commercial loan:

• Business owner looking to purchase a commercial building for his/her business.
• Business owner looking to purchase a commercial building where his/her business.
• Will occupy at least 51% and the remaining portion will be leased to tenants.

Purpose

A commercial loan to purchase an owner occupied property can be used for almost any type of property that is not specifically investor related such as an apartment building.  Additionally, farms, mining and other types of agricultural properties are not generally permitted under a traditional commercial loan.

Structure

Owner occupied commercial loans are generally written with 5, 7, 10, 15, 20, 25 and 30 year terms with or without balloons.In general for a purchase a borrower will be expected to put down 20% plus closing costs (SBA and USDA loans are usually only 10% which we offer).

Paperwork

For this type of commercial loan you should expect to provide full documentation including tax returns for the sponsor and the business that will occupy the space as well as personal financial statements on the sponsor.  Additionally, a credit report will be required for the sponsor as well as a D&B report on the business.

Fees

Commercial loans generally come with fees for things like appraisal, title work, environmental reports and points.

Most of our commercial loans are non-recourse meaning that borrower won’t risk personal assets.

Credit requirement of our commercial loans:

We have commercial loan products that can help people with impaired credit, these have higher commercial loan rates, and we also have commercial loan programs for people with great credit that deserve the best rates we have to offer.