Specialty program
Owner-occupied commercial loans, matched to your deal
An owner-occupied commercial loan finances property that the borrower's own business runs from rather than leases to others: a manufacturer's plant, a practice's clinic, a contractor's yard, a restaurant's building. Because the rent is coming from the borrower, lenders underwrite the business's cash flow rather than a third-party rent roll, and government-backed programs built for exactly this case are open to it. Lenders differ on how they read the business and which program fits, which is why one file deserves several answers.
- 5,000+loan programs screened
- 5–8matches on a typical deal
- $0 upfrontto submit and compare offers
- 0.50–1.00%broker fee, paid only at closing
Who is an owner-occupied loan actually for?
Operating businesses buying, building or refinancing their own premises, and owners of mixed buildings where the business occupies most of the space and leases out the rest. The line that matters is how much of the building the business uses: lenders and programs set a share the business must occupy, and a building where the owner is a minority tenant is financed as investment property instead.
What do owner-occupied lenders disagree about?
How to read the business. Lenders take different views on whether to underwrite the business's historical cash flow, its projections or both, how to treat owner compensation and add-backs, whether the real estate should be held in a separate entity that leases to the business, which government program fits and whether the deal qualifies for one at all, and how much recourse and personal financial strength they need from the owners. A bank and an SBA lender can reach different answers on the same set of tax returns.
What should be ready before an owner-occupied file goes out?
The business's tax returns and interim financials, a description of what the business does and how the building serves it, the occupancy plan that shows the share of space the business will use, the owners' personal financial statements, and the property contract or plans. Files that arrive with the business cash flow already reconciled to the proposed debt service get taken seriously faster, because that coverage test is the first thing any owner-occupied lender runs.
How does getting matched actually work?
You describe the deal once — about five minutes — and it is screened against 5,000+ loan programs. Most deals return 5–8 matches, and the median first offer arrives in under an hour. There is $0 upfront; the fee is 0.50–1.00%, paid only at closing.
YieldStack is a commercial mortgage brokerage, not a lender. The rate, the leverage and the credit decision belong to the lenders competing for your deal; our job is making sure the right ones see it at the same time, so the terms you compare are real competition rather than one desk’s appetite.
What do lenders actually look at?
Every program weighs these in its own way — which is the argument for several quoting at once.
- The business's cash flow and how it covers the proposed debt
- The share of the building the business occupies
- The owners' personal financial strength and willingness to guarantee
- Whether a government-backed program fits, and which one
- How the property is held and leased between the entity and the business
Frequently Asked Questions
How is this different from an investment property loan?
The income comes from the borrower's own business rather than from tenants, so the lender underwrites the business. Investment property loans underwrite the rent roll and treat the owner as a landlord.
Do I qualify for an SBA program?
Possibly, if the business is eligible and will occupy the required share of the building. Those programs exist for owner-occupied property specifically, and lenders that offer them will screen for fit early.
Should the real estate be in a separate entity?
Commonly, yes: a holding entity owns the building and leases it to the operating business. Lenders are used to the structure and often prefer it, and the lease becomes part of the file.
Can I lease part of the building to other tenants?
Yes, within the occupancy share the lender or program requires. The third-party rent is underwritten alongside the business cash flow rather than instead of it.
Is owner-occupied financing available for construction?
Yes. A business building its own facility can finance construction on owner-occupied terms, including through government-backed programs, with the same occupancy rules applied to the finished building.
Will the lender want a personal guaranty?
Usually. The business and its owners are the credit, and most owner-occupied lenders expect the principal owners to sign.
Is YieldStack a lender?
No. YieldStack is a commercial mortgage brokerage, not a lender. Every term sheet comes from a lender in the network and is subject to that lender's underwriting.
Does it cost anything to see terms?
No. It costs $0 upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
Is financing guaranteed?
No. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Next step
One deal.Several lenders.
YieldStack is a commercial mortgage brokerage, not a lender.