How Does Owner Occupied Financing Work for Commercial Property?

June 26, 2023

A key part of achieving sustained business success is being in the right place at the right time, especially when it comes to your physical location. Although your business may bring in stable revenue in your current location, you can reach new levels of growth by relocating to a better property that sets your company up for long-term success.

If your business is considering relocating to a new commercial property, owner occupied financing may be needed to streamline the land acquisition and development process.

Learn about different business scenarios where it makes sense to relocate to a different commercial property, how owner occupied loans can help, and the funding solutions available from Texas Gulf Bank.

Should Your Business Consider Relocation?

Even the most stable and successful business may face situations where it’s time to consider moving to a better commercial property. For example, your business may want to relocate to a new owner occupied property due to issues such as:

Wanting to own and occupy commercial property instead of renting
Outdated facilities requiring substantial renovations
Poor business visibility
No room for expansion
Stagnant market growth
Zoning restrictions impacting production or manufacturing
Unfavorable road or traffic conditions

Your business also should consider purchasing property if your company is currently beginning to experience substantial growth and reaping financial benefits. Obtaining a new owner occupied property makes sense if your business is interested in advantages such as:

Asset appreciation over time
Possible tax breaks for commercial property ownership*
Small business expansion opportunities
Reaching new customers in a different region of the Gulf Coast
Improved facilities
Better road or highway access
Generating rental income from tenant businesses

Your current property may be too small to meet your future business goals, or you may want a new business location closer to your target market. Whatever your reason for relocating your business, a commercial real estate loan from Texas Gulf Bank may be able to help.

How Does Owner Occupied Financing Work?

Owner occupied financing allows your business to pay for your business land, construction, and permanent mortgage financing all through a single loan program.

Unlike other kinds of conventional loans, your business must actually occupy at least 51% of the property to meet the owner occupancy requirements for this type of funding. (You can rent out the remainder of the property if you wish to generate additional revenue.)

Established businesses with steady revenue are far more likely to qualify for this type of loan, as it’s less risky and creates a host of advantages for borrowers. Owner occupied financing offers a fixed, stable monthly cost, steady financing for building construction, and typically manageable monthly mortgage payments that can stabilize your company’s cash flow.

Industries that may benefit most from owner occupied loans in Texas include:

Professional medical offices
Industrial buildings
Office complexes
Daycares and preschools
Warehouse companies
Law Offices

With reliable, strategic financing for your owner occupied property, your business can be positioned to experience more growth and revenue opportunities than ever before.

Owner-Occupied Loan Solutions from Texas Gulf Bank

Texas Gulf Bank has over 100 years of experience helping companies throughout the Gulf Coast obtain the financing needed to achieve long-term goals and business success, including owner occupied loans.

The loan application process with Texas Gulf Bank begins with an initial assessment to determine loan qualifications. We will examine basic details such as your current business history, current use of commercial property (are you renting or do you own your space?), and the market conditions of the area where you wish to relocate.

Applicants interested in an owner occupied commercial loan with Texas Gulf Bank will need to provide documentation including, but not limited to:

Completed loan application
Three years of tax returns for the business and all guarantors
Three years of business balance sheets and income statements
Current business financial statements
Business debt schedules
Personal financial statements from all guarantors
Detailed plans for the use of the property
Financial projections for revenue and possible rent revenue

Once the initial loan assessment is complete and loan documentation is submitted, our local team of decision-makers will review your information and make a lending decision. Because we handle all lending decisions in-house, many of our customers experience an expedited loan review.

Begin the Application Process Today!

Is your company ready to move to a new location that is better suited for your business needs? Texas Gulf Bank is here to help. For more than 100 years, we have helped members of the local business community along the Gulf Coast region achieve their growth goals.

Contact Texas Gulf Bank today to learn more about applying for owner occupied financing through our bank. Or complete the contact form to begin the loan application process and connect with one of our local lenders.

We look forward to partnering with you during this period of growth for your business.

*Consult your tax professional regarding how owning versus renting your commercial property might benefit you, depending on your particular circumstances.

All Loans Subject to Credit Approval