Commercial Loans for Owner Occupied Properties

There are certain loans for all sorts of property ownership. One particularly interesting type of loan is the commercial loan for owner occupied property. An owner occupied property is defined by Griffin Capital Funding (national leader of commercial loan services) as:

A property where the owner’s own business occupies at least 51% of the property.

Many business owners prefer to own the property where their business is located because it provides them the ability to control their costs and also earn some tax write offs. People looking for these commercial loans can be any kind of business that wants to control where they are located and costs around their location. Apartment complexes, farms and mines are considered investor related properties and do not usually qualify as owner occupied even if the owner lives on the property.

Commercial loans are usually drawn up for terms ranging from 5 to 30 years. Applicants are usually required to have a down payment of at least 25% of the total loan plus closing fees. Closing fees usually include appraisal, environmental, inspection and points and can usually run between $6,000 to $12,000. Unless the applicant has challenged credit or otherwise poses problems to the lending institution, their homes or other assets will not be required as collateral. Any commercial loan applicant must be ready to provide documentation the bank might require, including personal and business tax returns as well as financial statements and a credit report on the borrower.

Businesses that are trying to obtain owner occupied commercial loans should contact a qualified commercial lender like Griffin Capital Funding to discuss their particular situation. Keep in mind that the rules and regulations, as well as interest rates and other loan related policies vary per lender and state. Make sure to contact a commercial loan expert and inform yourself before applying for a commercial loan.

There are far fewer lenders offering commercial loans at reasonable rates and terms today than there were even 6 months ago so do your due diligence and contact a company that has a good reputation in the market place.