Sascu finances owner-occupied commercial properties where the borrower occupies at least 51% of the space, investment properties held for rental income, construction and renovation projects with a conversion to permanent financing upon completion, and multifamily properties with five or more residential units. Property types include office buildings, retail centers, industrial warehouses, mixed-use developments, and medical or professional office condos.
Sascu Commercial Real Estate
Commercial property financing sits at the intersection of real estate markets, business operations, and long-term capital planning. Sascu structures loans that align the debt service with how the property actually generates income, not with a one-size-fits-all amortization schedule.
Commercial real estate lending at Sascu covers four distinct property categories: owner-occupied buildings where your business is the primary tenant, investment properties held for rental income, ground-up construction and major renovation projects, and multifamily properties with five or more residential units. Each category carries its own underwriting logic, loan-to-value parameters, and rate environment, but they share a common Sascu approach — terms matched to asset life, not to an arbitrary cap.
Unlike residential mortgage lending where automated underwriting engines dominate, Sascu commercial real estate loans are reviewed by people who understand local property markets. A Sascu CRE underwriter will look at the property's net operating income, the credit profile of anchor tenants, the condition of the roof and HVAC systems, and the borrower's experience managing similar assets. That level of scrutiny produces better loan structures — ones that do not default because someone misread a market trend.
Sascu Login — Access Your Account Open a Sascu AccountThe Essentials
Before you start comparing rates, understand the structural decisions that shape every Sascu commercial real estate loan: property type, loan-to-value, amortization, and rate structure.
Owner-Occupied Properties
When your business occupies at least 51 percent of the building, Sascu classifies the loan as owner-occupied. These loans generally carry the most favorable terms — lower down payments, longer amortizations, and rates closer to residential mortgage pricing — because the borrower has a direct operational stake in maintaining the property. Sascu owner-occupied CRE loans can reach 25-year terms with fixed rates available for 5, 7, 10, and 15-year periods. The SBA 504 program, which Sascu originates as a Preferred Lender, is particularly well-suited for owner-occupied purchases, requiring as little as 10 percent down with the remaining 90 percent split between a Sascu first mortgage and an SBA-guaranteed second.
Investment Properties
Properties held primarily for rental income — retail strips, office buildings, industrial warehouses, self-storage facilities — fall under Sascu investment property lending. Underwriting focuses on the property's debt service coverage ratio: net operating income divided by total debt service. Sascu typically requires a DSCR of 1.25 or higher, meaning the property generates 25 percent more income than needed to cover the mortgage payment. Down payments for investment properties generally range from 25 to 35 percent, and terms may include a rate reset or balloon payment at year 5, 7, or 10, with the option to refinance or extend at prevailing rates.
Construction and Renovation
Sascu construction loans operate in two phases. During the build phase — typically 12 to 24 months — the borrower pays interest only on funds drawn, not on the full commitment. Sascu disburses draws against a pre-approved schedule tied to construction milestones verified by third-party inspection. Upon completion and issuance of a certificate of occupancy, the Sascu construction loan converts to permanent financing at terms established at origination, avoiding a second closing and a second set of fees.
CRE Loan Options
| Property Type | Max LTV | Term Range | Rate Type | Min Loan | Special Notes |
|---|---|---|---|---|---|
| Owner-Occupied | 80–90% | 5–25 years | Fixed or variable | $100,000 | SBA 504 eligible at 90% combined LTV |
| Investment Property | 65–75% | 5–25 years | Fixed or variable | $250,000 | DSCR minimum 1.25x required |
| Construction | 70–75% | 12–24 mo (build) + perm | Variable during build | $500,000 | Converts to permanent financing |
| Multifamily (5+ units) | 70–80% | 5–25 years | Fixed or variable | $250,000 | Property must be non-owner-occupied |
Rates, Terms, and Pre-Qualification
Sascu commercial real estate rates move with market indices — prime, SOFR, and Treasury yields — plus a spread determined by property type, loan-to-value, and borrower credit profile. Rather than publishing a rate sheet that ages within days, Sascu encourages a conversation. A 20-minute call with a Sascu commercial lending specialist produces a rate indication that reflects current pricing, not last month's numbers.
Fixed Versus Variable
The choice between fixed and variable CRE rates is a bet on the interest rate environment, but it is also a decision about how long you plan to hold the property. A fixed rate locked for 10 years gives you payment certainty whether rates rise or fall — useful if the property is a long-term hold and cash flow predictability matters more than the lowest possible initial rate. Variable-rate Sascu CRE loans, indexed to prime or SOFR, often price lower at origination and can save meaningful interest if you plan to sell or refinance within three to five years. Sascu variable-rate loans typically include rate adjustment caps and lifetime ceilings to limit exposure.
Down Payment Requirements
Equity injection varies sharply by property type. Owner-occupied SBA 504 loans start at 10 percent. Conventional owner-occupied loans at Sascu generally require 20 to 30 percent down. Investment properties run higher — 25 to 35 percent — reflecting the additional risk of tenant turnover and market rent fluctuation. Construction loans fall in the 25 to 30 percent range, with the land value counted as part of your equity contribution if owned free and clear.
Pre-Qualification
Sascu issues pre-qualification letters within three to five business days of receiving basic property and borrower information. A pre-qualification letter does not commit Sascu to lend — final approval requires full underwriting, appraisal, and environmental review — but it signals to sellers and brokers that a credible lender has reviewed your financial profile and determined that financing is likely achievable. In a competitive bidding situation, a pre-qualification letter from Sascu can distinguish your offer from one backed by a lender with no track record in commercial property.
What Sascu Members Say
We had been leasing our dental practice space for twelve years when the landlord put the building up for sale. Sascu structured a 504 loan that let us buy the entire property with ten percent down. Our monthly payment is now lower than our rent was, and we own an asset that has already appreciated.
Frequently Asked Questions
Sascu commercial real estate down payment requirements vary by property type and loan structure. Owner-occupied properties financed through the SBA 504 program may require as little as 10% down. Conventional Sascu CRE loans typically require 20% to 30% for owner-occupied properties and 25% to 35% for investment properties. Construction loans generally require 25% to 30% borrower equity.
Sascu commercial real estate loans carry terms from 5 to 25 years. Owner-occupied and SBA 504 loans can extend to 25 years. Investment property loans typically amortize over 20 to 25 years but may include a balloon or rate reset at year 5, 7, or 10. Sascu construction loans run 12 to 24 months during the build phase, then convert to permanent financing with the remaining term.
Both. Sascu offers fixed-rate commercial real estate loans for terms of 5, 7, 10, and 15 years, with rates locked at closing. Variable-rate Sascu CRE loans are indexed to the prime rate or SOFR with a margin, and may include rate caps. Fixed rates provide payment certainty, while variable rates often start lower and benefit borrowers who anticipate selling or refinancing within a few years.
Sascu CRE pre-qualification starts with a conversation. Provide basic information about the property type, estimated value or purchase price, intended use, and your financial profile. Sascu commercial lending specialists review these details and typically issue a pre-qualification letter within three to five business days. Pre-qualification is not a commitment to lend but gives you a credible estimate of what Sascu can finance, which strengthens your position when negotiating with sellers.
Related Services
Business Checking
Manage property income and operating expenses through a Sascu business account with multi-user access and wire transfer capability.
SBA Loans
SBA 504 program for owner-occupied commercial real estate with as little as 10 percent down and long-term fixed rates.
Sascu Merchant Services
Payment processing solutions for retail and mixed-use property tenants with next-day settlement.
Sascu Business Credit Cards
Rewards cards for property-related purchases, contractor payments, and operating supply expenses.
Sascu Financial Experts
Speak with a Sascu commercial lending specialist to evaluate financing options before making an offer on a property.
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- NCUA Share Insurance up to $250,000 per account
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- Equal Housing Lender — NMLS #1165892
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