How much down payment does a mixed-use loan need?
Mixed-use properties typically require 20 to 25 percent down through a DSCR mixed-use lender, 25 to 35 percent through a bank or commercial lender, and 10 to 15 percent through SBA when your own business occupies the majority of the building. A vacant commercial unit, a short commercial lease, or a first-time buyer of commercial property pushes the number toward the higher end of whichever range applies.
By financing path
| Path | Typical down payment | When it applies |
|---|---|---|
| DSCR mixed-use | 20 to 25 percent | Commercial income under the lender's cap, space leased |
| Bank or commercial | 25 to 35 percent | Larger commercial share, 5+ units, or agency-eligible |
| Bridge (vacant commercial) | 25 to 35 percent equity | Commercial space unleased |
| SBA | 10 to 15 percent | Your business occupies 51 percent or more |
Ranges vary by lender.
What pushes it up
Vacancy. A vacant commercial unit removes income from the coverage test and typically requires more equity through a bridge structure.
Lease length. A commercial tenant with under a year remaining reads similarly to a vacancy for many lenders.
Property type. Specialty commercial uses, such as restaurants with heavy buildout, often need more equity because resale is harder.
Experience. A first-time buyer of a mixed-use or commercial property may see 5 points added to the standard requirement.
Loan size. Very small mixed-use loans, under $200,000, sometimes carry higher down payment requirements because fewer lenders compete for them.
What brings it down
- A long-term commercial lease with a creditworthy tenant.
- Strong combined DSCR, 1.30 or better.
- SBA eligibility if your own business is the commercial tenant.
- A borrower with prior commercial or mixed-use ownership experience.
A worked example
$500,000 triplex with a leased ground-floor retail unit at 30 percent of income, DSCR of 1.28, borrower with no prior mixed-use experience. A DSCR mixed-use lender at 25 percent down requires $125,000. The same building with the retail unit vacant would likely need a bridge loan at 30 percent equity, or $150,000, until the space leases.
Closing costs on top
Budget 2 to 4 percent for lender fees, title, escrow, and any commercial appraisal addendum, separate from the down payment itself.
How CommFi handles it
Our lending desk reads the lease terms and the income mix and quotes the down payment across DSCR, bank, and SBA paths before you make an offer. It funds direct when it fits, and when a specific lender's terms are better for your situation, the desk searches a database of 7,000+ lenders and the ones that fit compete for the file. Zero upfront fees.
Related questions
- How much down payment does a mixed-use property need?
- Typically 20 to 25 percent through a DSCR mixed-use lender, 25 to 35 percent through a bank, and 10 to 15 percent through SBA if your business occupies the space.
- Does a vacant commercial unit increase the down payment?
- Yes. It usually moves the file to a bridge loan structure at 25 to 35 percent equity until the space is leased.
- Can SBA financing lower my mixed-use down payment?
- Yes, to 10 to 15 percent, if your own business occupies at least 51 percent of the building.
- Does a first-time commercial buyer pay a higher down payment?
- Often, by roughly 5 points above the standard requirement for the financing path used.
- What closing costs come on top of the down payment?
- Typically 2 to 4 percent for lender fees, title, escrow, and any commercial appraisal work.
Property developer and licensed appraiser. 22+ years in real estate: TIC conversions, multi-unit redevelopments, mixed-use, fix and flips, commercial DSCR.