Top mistakes: ignoring the balloon/term structure, thin reserves, overestimating NOI, and not comparing SBA vs. conventional for owner-occupied deals.
Underwriting mistakes
Overstating NOI by underestimating vacancy and expenses inflates what you think you can borrow. Underwrite conservatively, and keep reserves — commercial cash flow can be lumpy.
Structure mistakes
Not planning for a balloon, or skipping the SBA comparison when you’ll occupy the space, are costly. We map the term, exit, and best structure before you commit.
Frequently asked questions
How do I avoid balloon trouble?
Plan the refinance or payoff well before the balloon date. We build the exit into your plan from the start.
How much reserve should I keep?
Enough to weather vacancy and expenses — commercial income is less predictable than a single rental.
Should owner-occupants always consider SBA?
Usually yes — it can dramatically lower cash-in. We’ll compare it to conventional every time.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.