Conventional Owner-Occupied Real Estate Financing

Conventional Owner-Occupied
Real Estate Financing

Commercial Real Estate Loans

Conventional Owner-Occupied Real Estate Financing

If your business will occupy the property you’re buying, you have more financing paths available than an investor does – including conventional bank financing and, if your business occupies at least 51% of the building, SBA 7(a) or SBA 504. Which one fits best depends on your loan size, down payment capacity, and how much rate certainty you want.

Explore Property Type

At a Glance

	Conventional	SBA 7(a)	SBA 504
Conventional / Bank Term	20%–30%+	10%	As low as 10%
Rate	Often lower than SBA, specific to the lender, amortizing 15–25 years	Floating, tied to WSJ Prime	Fixed for the full term
Occupancy Requirement	None - investor or owner-occupied	51%+ owner-occupied	51%+ owner-occupied
Best For	Investment properties, businesses that have exceeded SBA limits, very strong financials and a strong borrower, or want a lower rate	Real estate plus other business needs in one loan	Real estate/equipment only, want long-term rate certainty

When Conventional Makes More Sense

Larger loan amounts - conventional financing isn't capped the way SBA 7(a) ($5 million) and SBA 504 ($5–5.5 million SBA-guaranteed portion) are, which matters for larger acquisitions
Stronger financials, less paperwork - if your business has strong credit and cash flow, conventional underwriting can move faster and with less documentation than SBA's process
Lower, fixed rates for well-capitalized buyers - if you have the liquidity to cover a 20–30%+ down payment, conventional lenders can often offer a lower fixed rate than SBA financing

When SBA Makes More Sense

Lower down payment - 10% versus 20–30%+ for conventional, which preserves capital for other business needs
Fixed rate certainty (504) - a rate that never moves for the life of the loan, which conventional financing typically can't match

Bundling other needs (7(a)) - financing the real estate alongside working capital, equipment, or a business acquisition in a single loan

For the full SBA-specific breakdown – occupancy rules, the acquisition-related 51% amortization rule, and more – see SBA for Owner-Occupied Real Estate Purchases.

Ready to Buy Your Building?

Get Pre-Qualified

Property Type

Find Your Property Type

Underwriting varies by what you’re buying. See the page for your specific property type for details tailored to it:

Multifamily Property Loans

Explore More

Retail Property Loans

Explore More

Warehouse Property Loans

Explore More

Office Property Loans

Explore More

Mixed Use Property Loans

Explore More

Special Use Property Loans

Explore More

Frequently Asked Questions

Should I use conventional or SBA financing to buy my business's real estate?

It depends on your loan size and down payment capacity. SBA typically offers a lower down payment and, on 504, a fixed rate – but conventional financing has no loan cap and no occupancy requirement, which matters for larger purchases.

Do I have to occupy the property to get SBA financing?

Yes – SBA 7(a) and 504 both require your business to occupy at least 51% of the building. Conventional financing has no such requirement.

Is there a maximum loan amount for SBA financing?

Yes – SBA 7(a) caps at $5 million, and SBA 504’s guaranteed portion caps at $5–5.5 million, though total project cost can run higher with a bank partner. Conventional financing has no equivalent cap.

What's the fastest way to close on owner-occupied real estate?

It varies by deal, but conventional financing for a borrower with strong, straightforward financials can sometimes move faster than SBA’s more document-intensive process – though SBA’s 48-hour pre-qualification with our firm keeps that gap smaller than it is elsewhere.