COMMERCIAL REAL ESTATE
Buy the building you already pay rent on
Summit finances owner-occupied commercial property: purchase, ground-up construction and refinance. Up to 80% loan to value, rates from 6.95% fixed for 5, 7 or 10 years, amortized over as long as 25.
Three situations
Buy it, build it or refinance it
Owner-occupied means your business uses at least 51% of the square footage. You can lease the rest out, and that income counts toward the file.
Purchase
A shop, a warehouse, a professional office or a mixed-use storefront. Plan on 20% down, and expect the payment to look a lot like the rent you already write a check for.
Construction
Build new or gut and expand what you own. Interest-only draws during construction up to 75% of total project cost, then a single conversion into permanent financing with no second closing.
Refinance
Most commercial loans balloon in five years, and that date arrives fast. Bring us your note 6 to 9 months early so we can price it without a deadline pushing you.
What to expect
Loan to value, terms and size
These are the outer edges. Where you land inside them depends on the property type, your cash flow coverage and how long you have operated.
Item
Figure
Detail
Maximum loan to value
80%
Purchase or refinance of owner-occupied property
Construction financing
75%
Of total project cost, including land already owned
Starting rate
6.95%
Fixed for 5, 7 or 10 years, then repriced
Amortization
20 or 25 years
25 years generally reserved for newer, general-purpose buildings
Loan amounts
$100,000 to $5M
Above $250,000 the file also goes to our commercial committee
Debt service coverage
1.25x minimum
Business cash flow plus any tenant rent, against total debt payments
All commercial credit is subject to approval, appraisal and environmental review. Fixed-rate loans carry a step-down prepayment schedule disclosed in the commitment letter. Rates current as of July 2026 and subject to change. Membership eligibility required. This is a demonstration website; rates, products, and figures shown are illustrative only. Equal Housing Opportunity Lender.
The process
Sixty days, and you know what happens in each of them
Commercial closings take longer than home loans because a third party has to value the property and confirm it is clean. Here is the order it happens in.
Term sheet in about a week
Send the purchase agreement or current note, two years of business returns and a rent roll if there are tenants. You get a written term sheet with rate, amount, term and conditions before you spend money on reports.
We order the appraisal, not you
Federal rules require the lender to engage the appraiser independently, so we select a state-certified commercial appraiser from our panel. Expect three to five weeks and a cost between $2,500 and $4,500 depending on complexity, paid by you at order.
Environmental and title review
Most properties need only a records-based screen. A former gas station, dry cleaner or repair shop usually triggers a full Phase I assessment, which adds two to three weeks. Title work and survey run at the same time.
Close and record
Final numbers come to you at least three days ahead so nothing at the table is a surprise. Purchases fund at closing; construction loans move to a draw schedule inspected before each release.
Common questions
What does owner-occupied actually require?
Your business has to occupy at least 51% of the building's usable square footage. Leasing the remaining space to tenants is fine and often helps, because we count that rent when we calculate coverage.
Why does the rate only stay fixed for five to ten years?
Commercial loans reprice rather than staying fixed for the whole amortization. Your payment is calculated on a 20 or 25 year schedule, and at the end of the fixed period the rate resets for the next term. Nothing is due in full unless you choose a balloon structure.
Can I use equity in my home for the down payment?
Some owners do, using a home equity line at 6.625% and treating it as their injection. We will tell you plainly how it affects your personal debt load, and whether a smaller loan with a longer term gets you to the same place with less risk.
What if the appraisal comes in low?
The loan is sized off the lower of purchase price or appraised value, so a short appraisal means more cash down or a renegotiated price. Your banker calls you the day the report lands and walks through the options.
Do you finance investment property with no owner occupancy?
On a limited basis, for members with an existing relationship and property in our service area. Terms are tighter: expect 70% loan to value and a shorter fixed period. Start the conversation with your business banker.
Can I roll the buildout into the purchase loan?
Yes, when the work is quoted and contracted. We underwrite the purchase price plus improvements against the appraiser's as-completed value, and release the improvement funds in draws as the work is inspected.
Bring us the listing or the note
A commercial lender will tell you within a week whether the deal works and what it will take.