No, you don’t always have to put 20% down on a commercial loan, but that’s a common benchmark. The exact down payment depends on several factors:
- Type of property: Office buildings, retail, multifamily, and industrial properties may have different requirements.
- Loan type and lender: Conventional commercial loans often require 20–30%, but SBA 7(a) or 504 loans can sometimes allow 10–15% down.
- Creditworthiness and financial strength: Stronger credit and solid cash flow may allow for a lower down payment.
- Loan amount and term: Shorter-term or smaller loans may have more flexible down payment options.
💡 Typical ranges:
- Conventional commercial loan: 20–30% down
- SBA 7(a) loan: 10–20% down
- SBA 504 loan (for owner-occupied commercial property): 10% down, sometimes 5% for small businesses
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