Purchase, refinance, or construct commercial property with financing from Servus Credit Union — including owner-occupied, investment, and SBA 504 loan programs structured around your business strategy.
Buying, building, or refinancing commercial real estate shapes your balance sheet for years. Servus Credit Union underwrites CRE loans locally, which means the decision-makers understand regional property markets, cap rates, and tenant dynamics rather than applying a one-size-fits-all formula. The credit union offers conventional commercial mortgages, construction-to-permanent loans, and SBA 504 financing, each structured to match the property type and how your business intends to use the space.
When your business occupies the property, an owner-occupied commercial mortgage from Servus CU typically requires 15% to 20% down, with terms extending to 25 years. The credit union evaluates the property's cash flow as part of underwriting but places significant weight on your company's operating performance, since your business generates the revenue that services the debt. Rates are competitive with and frequently lower than conventional bank offerings because of the credit union's not-for-profit structure. Fixed-rate terms of five, seven, and ten years are available with amortizations up to 25 years. After the fixed period, the rate adjusts based on a published index plus a margin. Balloon payments are structured so the amortization outpaces the term, meaning you build equity steadily.
For properties where your business is the landlord, Servus CU underwrites based on the debt-service coverage ratio. A DSCR of 1.25 or higher is typically required. The credit union finances multi-family properties with five or more units, retail centers, office buildings, industrial warehouses, and mixed-use developments. Down payments on investment properties generally start at 25%. Underwriting includes a review of the rent roll, tenant credit quality, lease expiration schedule, and property condition. Servus orders an independent appraisal and environmental assessment, with a typical closing timeline of 45 to 60 days. For investment property lending standards, consult ncua.gov.
The SBA 504 program is purpose-built for owner-occupied commercial real estate and heavy equipment. The loan structure splits financing three ways: Servus provides a first mortgage for 50% of the project cost, a Certified Development Company issues a second mortgage for 40% backed by an SBA-guaranteed debenture, and the borrower contributes as little as 10%. The CDC portion carries a fixed rate locked for 10, 20, or 25 years. The Servus first mortgage carries a negotiated rate. This structure gives business owners long-term rate certainty on 40% of the financing while keeping the down payment low enough that capital remains available for operating needs. Eligible uses include purchasing an existing building, constructing a new facility, and renovating owned property. The program requires creating or retaining one job per $75,000 of SBA funding for most borrowers.
Servus Credit Union offers construction-to-permanent loans covering both the building phase and the long-term mortgage in a single closing. During construction, you pay interest only on drawn funds, with disbursements tied to inspection-verified progress. Once complete, the loan converts to a permanent mortgage. The credit union also finances major renovations — tenant improvements, facade upgrades, building system replacements — through construction or term loans secured by the property. Both require detailed contractor estimates, a project timeline, and contingency reserves, which your Servus relationship manager helps organize before underwriting.
| Loan Type | Max LTV | Typical Term | Amortization | Best For |
|---|---|---|---|---|
| Owner-Occupied CRE | 80–85% | 5–25 years | Up to 25 years | Businesses occupying property |
| Investment Property | 75% | 5–20 years | Up to 25 years | Income-producing rental properties |
| SBA 504 | 90% (combined) | 10–25 years | Matches term | Owner-occupied purchase/construction |
| Construction-to-Perm | 80% | 12–24 mo + perm | Up to 25 years | Ground-up construction |
| Renovation / TI | 80% of post-reno | 1–10 years | Matches term | Major renovations and build-outs |
LTV = loan-to-value ratio. Rates, terms, and LTV limits subject to credit approval and property type.
Servus Credit Union finances a broad spectrum of commercial property types: owner-occupied offices and retail spaces, multi-family apartment buildings with five or more units, industrial warehouses, mixed-use developments that combine commercial and residential space, medical and professional office buildings, and standalone retail centers. The credit union also finances special-purpose properties — auto repair shops, self-storage facilities, religious institutions — on a case-by-case basis with underwriting adjusted for the property's specialized use. Vacant land acquisition is not typically financed as a standalone loan but can be included as part of a construction-to-permanent package when a builder and project plan are attached. If your property type falls outside these categories, a Servus commercial lending officer can review the specifics. Every loan application begins with a conversation about the property, not a checklist that excludes you before anyone has examined the deal.
The distinction determines how the credit union underwrites the loan. For owner-occupied property — where your business uses at least 51% of the square footage — Servus CU evaluates your company's operating cash flow and global financial condition alongside the property's income potential. Down payments are lower (15% to 20%), and rates are typically better because owner-occupied loans carry less default risk. Investment property loans are underwritten primarily on the property's ability to generate enough net operating income to cover debt service. The debt-service coverage ratio — usually requiring 1.25 or higher — is the go/no-go metric. Down payments start at 25%, and the credit union reviews the rent roll, lease terms, tenant creditworthiness, and property operating statements in detail.
A construction-to-permanent loan combines construction financing and the permanent mortgage into a single closing, saving duplicate costs. During the construction phase, typically 12 to 24 months, you pay interest only on drawn funds. Servus disburses payments to the contractor in stages with each draw verified by an inspector. A contingency reserve — usually 10% of the construction budget — is built into the loan, and unused contingency funds reduce the loan balance at conversion. Once the certificate of occupancy is issued, the loan converts to a permanent mortgage with principal-and-interest payments amortized up to 25 years. The interest rate on the permanent portion is locked at closing, so you are not exposed to rate increases during the construction period.
A conventional CRE loan at Servus CU typically closes within 45 to 60 days from application to funding, assuming the borrower provides financial documentation promptly and the property requires no unusual environmental remediation. The timeline breaks down as follows: initial underwriting and term sheet in 7 to 10 business days, third-party reports including appraisal and environmental assessment in 2 to 4 weeks, final credit approval in 3 to 5 business days after reports arrive, and closing document preparation in 1 to 2 weeks. SBA 504 loans add approximately two to three weeks for SBA authorization review. Your Servus relationship manager provides milestone updates throughout so you can coordinate lease expirations, contractor schedules, and 1031 exchange deadlines. The credit union prides itself on meeting stated closing dates rather than letting transactions drift. For lending regulation details, see consumerfinance.gov.
Whether you are acquiring your first owner-occupied building or refinancing an investment portfolio, a Servus commercial real estate lender will structure financing that aligns with your business plan.
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