How to Buy a $2.5M Commercial Property With Just 10% Down

A Comprehensive Guide by the Experts at Money Financial Group

Can you really buy a $2.5 million commercial property with just 10% down?
Yes — but the path is more complex than many realize.

At Money Financial Group, we work with investors and business owners across the U.S. every day to structure exactly these kinds of deals. While traditional banks often require 25–35% down, several well-structured loan programs can enable qualified borrowers to secure commercial properties with as little as 10% equity — in certain scenarios.

In this guide, we will explain:
✅ When 10% down is possible
✅ How key loan programs work — including SBA 504 and private bridge options
✅ The risks and trade-offs to understand
✅ How to qualify
✅ What a $2.5M deal might look like in practice

Our goal is to give you real, verifiable, expert insight — not empty promises — so you can confidently approach your next acquisition.

Table of Contents

Add a header to begin generating the table of contents

Why 10% Down Is Possible — And Why It’s Often Overlooked

Most investors assume high down payments are required to purchase commercial real estate because that’s what traditional banks typically require:

Conventional bank loans: 25–35% down is common
Agency multifamily loans (Fannie/Freddie): typically 20–30% down
CMBS loans: 25–30% down for most deals

But banks are not your only option.
→ If you know how to structure the right deal and work with the right lenders, 10% down is possible in specific scenarios.

The Three Main Paths to 10% Down Commercial Property Financing

1️⃣ SBA 504 Loan Program (with 10% Down for Owner-Occupied Properties)

Key Program Features:

Designed for owner-occupied commercial properties
Up to 90% Loan-to-Value (LTV) → 10% down
Long-term fixed rate on SBA portion (20 or 25 years)
Typical structure:
- 50% from a participating bank lender
- 40% from a Certified Development Company (CDC), backed by SBA guarantee
- 10% from borrower

Eligibility Criteria:

Business must be for-profit and U.S.-based
Tangible net worth < $20 million
Average net income < $6.5 million (after federal taxes, 2-year average)
Property must be at least 51% owner-occupied
Borrower must demonstrate ability to repay the loan
Business experience and management capability are key factors
Acceptable credit history

Common property types:

✅ Office buildings
✅ Retail properties
✅ Industrial/flex spaces
✅ Medical buildings
✅ Warehouses

Limitations:

Not available for pure investment properties or passive income plays
Detailed underwriting process — documentation intensive
Processing times can be longer than private loans

Sources: SBA.gov — SBA 504 Loan Program

2️⃣ Private Lender Bridge Loans (Up to 90% LTV in Specific Scenarios)

Overview: Certain private lenders offer bridge loans at up to 90% LTV for commercial property acquisitions, but with key differences from SBA programs.

Key Characteristics:

Short-term loans (typically 12–36 months)
Interest-only payments during loan term
Fast funding — some can close in 7–10 days
Often used for value-add acquisitions, transitional properties, or competitive purchase timelines
Available to investors for both owner-occupied and non-owner-occupied properties
No SBA restrictions on use

Trade-offs and Risks:

Higher interest rates (typically 9–12% or more)
Higher origination fees (2–4% common)
Exit strategy required → refinance or sale before maturity
Higher leverage = higher risk → requires strong underwriting
Not a “permanent” financing solution

Ideal Use Cases:

Time-sensitive acquisitions
Properties needing repositioning or improvements
Borrowers unable to meet conventional bank underwriting due to speed or other factors

Important Note:
Private bridge loans are NOT the same as SBA or conventional permanent financing. They serve a specific purpose — and without a strong exit strategy, borrowers risk loan maturity issues or unfavorable extension terms.

3️⃣ Institutional Niche Programs (Selective High-LTV Permanent Loans)

Overview: In select cases, certain non-bank institutional lenders — such as debt funds, life companies, or niche commercial mortgage platforms — may offer permanent financing at up to 90% LTV.

However:

This is far less common than SBA 504 loans
Typically reserved for very strong sponsors and top-tier properties
Often seen in highly competitive core urban markets or specialized programs

When it may be available:

Properties in prime markets with exceptional tenant quality
Borrowers with very high net worth and strong track record
Some life company programs for owner-occupied medical or professional office
Select debt funds offering non-recourse high-LTV loans with equity participation

Risks and Considerations:

Programs are highly specialized and not openly marketed
Interest rates may include equity-like components or participation features
May carry covenant-heavy structures
Typically requires excellent sponsor credentials

Our Take:
→ For most investors, SBA 504 and bridge loans are more accessible 10% down paths.
→ Institutional niche programs are a specialized tool — if your profile qualifies, we can help you explore options.

What Lenders Look for in 10% Down Commercial Deals

Achieving high leverage requires convincing lenders you are a low-risk borrower even with limited initial equity.

Here is what matters most:

Factor	Typical Expectation
Credit Score	680+ (SBA can consider 650+ with strengths elsewhere)
Net Worth	Equal to or greater than loan amount preferred
Liquidity	Enough to cover down payment + 6–12 months reserves
Experience	Relevant CRE or business experience required
DSCR	1.25x+ for stabilized property (or business cash flow)
Owner-Occupancy (SBA)	51%+ for 504 eligibility
Property Condition	Clean property — no major deferred maintenance

Real-World Example: 10% Down Mixed-Use Deal

Scenario:

One of our clients — an experienced business owner — wanted to acquire a $2.4M mixed-use property (ground floor retail, upper-floor office).
The business would occupy 60% of the space — making the deal SBA 504 eligible.

Structure:

50% bank first loan → $1.2M
40% SBA 504 CDC loan → $960K
10% borrower equity → $240K down payment

Key Factors That Enabled Success:

Strong personal credit (700+)
Proven business with 5+ years of profitability
Business occupied 60% of building
Experienced commercial real estate counsel guiding documentation

Outcome:

→ Client closed the deal with just $240K out of pocket — retaining capital to fund build-out and business expansion.

Common Pitfalls and Risks

It is critical to understand the risks associated with low-down commercial deals:

✅ Higher leverage = higher risk: Less equity means less margin for error
✅ Higher interest costs: Bridge loans especially carry significant cost
✅ SBA limitations: SBA 504 loans are not available for pure investment properties
✅ Exit risk: Bridge loans require defined refinancing or sale path
✅ Processing time: SBA loans involve substantial documentation — not ideal for “fast close” scenarios
✅ Market risk: If property values decline, high-LTV borrowers face greater default risk

Key takeaway: → 10% down is a tool, not a shortcut. It must fit your broader financial strategy and risk profile.

Comparing Your Options

Loan Type	Max LTV	Use Case	Term	Speed	Risks
SBA 504	90%	Owner-occupied CRE	20–25 yrs fixed	60–90 days	Documentation, owner-use requirement
Private Bridge	Up to 90%	Transitional / value-add / time-sensitive	12–36 months	7–14 days	Higher rates, refinance risk
Institutional Niche	Up to 90% (rare)	Exceptional assets / strong sponsors	5–30 yrs	30–60 days	Highly selective, complex terms

Conclusion: Is 10% Down Right for You?

Buying a $2.5M commercial property with 10% down is absolutely achievable — but only with the right structure, the right lender, and a strong borrower profile.

Money Financial Group helps clients structure these deals every week — and we know exactly where the real opportunities (and risks) lie.

Next Steps

👉 Want to see if YOUR deal qualifies?
→ Request your free prequalification review here.
→ Or contact our team for a custom consultation — no obligation.

👉 Looking for a full 90% LTV checklist?
→ Download our free 10% Down CRE Loan Checklist

Key Takeaways

✅ SBA 504 is the most proven path to 10% down — but only for owner-occupied properties
✅ Private bridge loans can offer fast 90% LTV — with higher costs and short terms
✅ Institutional niche programs exist — but are highly selective and rare
✅ Careful planning and expert guidance are critical
✅ Money Financial Group can help you navigate the process from start to finish

Disclaimers

The information provided in this article is for educational purposes only and does not constitute financial, investment, or legal advice. Loan availability, terms, rates, and eligibility requirements may vary and are subject to change based on market conditions and lender policies. Individuals should consult with qualified financial and legal professionals before pursuing any commercial real estate financing strategy. Money Financial Group does not guarantee loan approval or specific loan terms.

About Money Financial Group

Money Financial Group is a trusted leader in commercial real estate and business financing solutions, helping investors and entrepreneurs structure smart, competitive funding for properties nationwide. Our team of seasoned experts brings deep experience across SBA lending, bridge financing, structured debt, and niche programs. We are committed to delivering transparent guidance and building lasting client relationships.