Owner-occupied means your business uses 51% of it
Occupy a little more than half the usable square footage and the property qualifies for our best commercial terms. You can lease the rest to tenants, and that rent counts toward debt service coverage rather than working against you. It is how a two-bay repair shop ends up owning a four-bay building and letting the other operators pay most of the note.
The outer edges of a commercial deal
Where you land inside these limits depends on property type, cash flow coverage and how long you have operated.
All commercial credit is subject to approval, appraisal and environmental review. Fixed-rate loans carry a step-down prepayment schedule disclosed in the commitment letter. Rates current as of July 2026 and subject to change. Membership eligibility required. This is a demonstration website; rates, products, and figures shown are illustrative only.
What we lend against
Property type drives the term and the amortization more than almost anything else in the file.
Sixty days, and you know what happens in each of them
Commercial closings take longer than home loans because a third party has to value the property and confirm it is clean. Week one is the term sheet: send the purchase agreement or your current note, two years of business returns and a rent roll if there are tenants, and you get rate, amount, term and conditions in writing before you spend a dollar on reports. Federal rules require the lender to engage the appraiser independently, so we order that from our panel rather than asking you to shop for one.
Title work and the survey run alongside the appraisal, and environmental review is a records screen on most properties. Final closing figures reach you at least three business days ahead so nothing at the table is a surprise. Purchases fund the day you sign; construction loans move onto a draw schedule with an inspection before each release. Ask about pairing the deal with equipment financing if the building needs machinery, or about title services handled in house.
Appraisals, repricing and down payments
Why does the rate only stay fixed for five to ten years?
Commercial loans reprice rather than staying fixed for the entire amortization. Your payment is calculated on a 20 or 25 year schedule, and the rate resets at the end of the fixed period. Nothing comes due in full unless you choose a balloon structure.
What if the appraisal comes in low?
The loan is sized off the lower of purchase price or appraised value, so a short appraisal means more cash down or a renegotiated price. Your banker calls you the day the report lands and walks through both options with real numbers.
Can I use equity in my home for the down payment?
Some owners do, drawing on a home equity line for the injection. We will tell you plainly how it affects your personal debt load and whether a smaller loan over a longer term gets you to the same place with less exposure.
Do you finance investment property I will not occupy?
On a limited basis, for members with an existing relationship and property inside our service area. Terms are tighter: plan on 70% loan to value and a shorter fixed period. Start that conversation with your business banker.
Can I roll the buildout into the purchase loan?
Yes, when the work is quoted and under contract. We underwrite purchase price plus improvements against the appraiser's as-completed value and release the improvement funds in draws as the work is inspected.
How early should I refinance a balloon?
Six to nine months out. That leaves room for the appraisal, gives you leverage to compare offers, and avoids a scramble if the environmental screen turns up something that needs a Phase I. Bring the note and the last two years of returns.
Bring us the listing or the note
A commercial lender will tell you within about a week whether the deal works and exactly what it will take.