Match the loan to the property
Owner-occupied properties (you use 51%+ for your business) qualify for SBA 504 and SBA 7(a) with as little as 10% down. Pure investment properties require conventional CRE or DSCR loans with 20-30% down.
How lenders underwrite CRE
Debt Service Coverage Ratio (DSCR) is the key metric — net operating income divided by annual debt service. Most lenders want 1.20-1.25 minimum. Cap rate, occupancy history, and lease quality matter as much as your personal credit.
SBA 504 vs SBA 7(a)
SBA 504 uses two loans (bank + CDC) with a fixed 25-year second, best for real estate and heavy equipment. SBA 7(a) is more flexible — real estate, working capital, business acquisition — with variable rates up to 25 years for real estate.
Bridge and value-add
When a property needs stabilization, a 12-24 month bridge loan buys time to raise rents, lease vacancies, or complete renovation, then refinance into permanent debt at better terms.
Florida-specific considerations
Hurricane insurance, flood zones, and rising insurance premiums directly impact DSCR. Underwriters increasingly stress-test insurance costs before approving loans in coastal counties.
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