Commercial loans typically need 20–35% down, a property that cash flows (DSCR around 1.20–1.25+), solid credit, business/financial documentation, and often reserves. Owner-occupied deals may access SBA financing.
Down payment, DSCR & docs
Expect 20–35% down and a focus on the property’s net operating income versus the payment (DSCR). Lenders review business financials, rent rolls, leases, and your credit and experience.
Owner-occupied vs. investment
Owner-occupied commercial (you run a business in the space) can qualify for SBA 504/7(a) financing with lower down payments. Investment commercial is underwritten mainly on the property’s cash flow. We source both.
| Requirement | Typical |
|---|---|
| Down payment | 20–35% (less with SBA) |
| DSCR | ~1.20–1.25+ |
| Credit | Strong; experience helps |
| Docs | Financials, leases, rent roll |
Frequently asked questions
How much down for a commercial property?
Commonly 20–35%. Owner-occupied SBA options can require significantly less.
What DSCR do commercial lenders want?
Often 1.20–1.25 or higher — net operating income comfortably above the payment.
Can I use an SBA loan?
If you occupy the property for your business, SBA 504/7(a) may allow lower down payments. We’ll check eligibility.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.