Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
I saw an ad in a small business magazine offering SBA 504 loans for owner-occupied commercial real estate. It got me thinking of doing something equivalent to a house hack but with a local multifamily property using the SBA instead of the FHA. I'm not sure though if it's supposed to be used for office space for a small business or something else entirely. Is a live-in multifamily viable? Does anyone have experience with SBA 504 loans?
SBA 504 can be used to purchase real estate where the borrowing business occupies more than 50% of the space. This could work for retail, office, self storage, or hotels, for example. Doesn’t work for a residential use, so multifamily is out.