# Commercial, SBA or Residential DSCR: Which Financing Path Fits?

> Use the property, occupancy and proceeds purpose to choose a financing path: occupied commercial assets use conventional CRE review, eligible operating-business uses may fit SBA, and non-owner-occupied residential rentals use DSCR review.

Canonical: https://riversidepark.capital/commercial-vs-sba-vs-dscr-financing
Markdown: https://riversidepark.capital/commercial-vs-sba-vs-dscr-financing.md

## Quick answer

Use the property, occupancy and proceeds purpose to choose a financing path: occupied commercial assets use conventional CRE review, eligible operating-business uses may fit SBA, and non-owner-occupied residential rentals use DSCR review.

## Which facts decide the program before you compare loan amounts?

Start by separating a commercial asset, an operating business's premises and a residential rental. Then identify whether the transaction is a purchase, rate-and-term refinance, cash-out or business acquisition. The largest displayed limit should not determine the product; the limit belongs to a specific use and property.

**Where it fits:** The comparison below describes public guidelines, not interchangeable underwriting rules. SBA terms receive individual review, while conventional commercial and residential DSCR have their own published leverage and DSCR figures. Renovation and ground-up projects also have distinct programs and should not be described as stabilized rentals.

**Example:** Illustrative: a leased office purchase starts in conventional CRE, a shop purchasing its own premises warrants SBA review, and an investor purchasing a rental house starts in residential DSCR. A cash-out purpose changes the relevant ceilings even if the property stays the same.

**Fit check:** Occupied commercial real estate, minimum FICO 680, minimum DSCR 1.15x, and no more than 75% LTV. Value, income, title and documents must support the request.

Apply with your property and financing request, or submit a deal as a broker through Partners.

## Loan parameters

- Loan size: $100,000 to $15,000,000
- Loan type: Commercial Purchase & Rate-and-Term Refinance

## Eligible assets

- Multifamily
- Office
- Retail
- Industrial
- Mixed-use
- Self-storage
- Cold storage
- Hotels
- Motels
- Data centers

## Underwriting guidelines

- Maximum loan amount: $15 million
- Maximum LTV: 75%
- Minimum FICO: 680
- Minimum DSCR: 1.15x
- Occupied commercial real estate only
- Closing in as little as 30 days
- Commercial financing is available in 48 states. Washington, DC is unavailable. Check the property's state before proceeding.
- All property types are subject to underwriting.
- Maximum loan amount: $5 million
- Maximum purchase LTV: 80%
- Minimum FICO: 680
- Minimum DSCR: 1.10x
- Non-owner-occupied residential investment properties only
- Cash-out refinance leverage is confirmed per deal
- Residential DSCR financing is available in 43 states. Washington, DC is unavailable. A portfolio's properties must each be in an eligible state.
- Up to 90% financing for qualifying SBA transactions
- Owner-occupied commercial real estate eligibility requirements apply
- SBA 7(a): up to $5 million per loan
- SBA 504: SBA/CDC portion up to $5 million ($5.5 million for qualifying manufacturing and energy projects); total project financing can be larger
- Closing in as little as 45 days for qualified transactions
- Owner-occupied commercial real estate eligibility requirements apply. RPC's public minimum FICO is 680; this is RPC's guideline, not a universal SBA credit-score rule. Business repayment capacity and SBA eligibility are reviewed individually; no common SBA DSCR floor is published here.
- RPC handles SBA terms individually. Submit an application for review; this page does not offer an automated rate-sheet quote.

## How do the public financing guidelines differ? (as of 2026-10-08)

| Financing path | Property / use | Loan limit | Leverage | DSCR / credit | Closing |
| --- | --- | --- | --- | --- | --- |
| Commercial purchase / rate-and-term | Occupied commercial real estate only | $15 million | 75% LTV | 1.15x / FICO 680 | As little as 30 days |
| Commercial cash-out | Occupied commercial real estate only | $5 million | 75% LTV | 1.15x / FICO 680 | As little as 30 days |
| Residential DSCR | Non-owner-occupied residential investment properties only | $5 million | 80% purchase LTV; cash-out confirmed per deal | 1.10x / FICO 680 | Confirmed per deal |
| SBA 7(a) | Owner-occupied commercial real estate, business acquisition, equipment and working capital | $5 million per loan | Up to 90% financing for qualifying SBA transactions | Business repayment reviewed individually / RPC minimum FICO 680 | As little as 45 days for qualified transactions |
| SBA 504 | Owner-occupied commercial real estate and long-life equipment | $5 million SBA/CDC portion; $5.5 million qualifying manufacturing/energy | Up to 90% financing for qualifying SBA transactions | Business repayment reviewed individually / RPC minimum FICO 680 | As little as 45 days for qualified transactions |

- 504 total project financing can be larger than its SBA/CDC portion. SBA owner-occupied CRE eligibility applies. All limits are subject to underwriting.

## FAQs

**Q: Can I use conventional commercial limits on a residential rental?**

No. Residential DSCR has a $5 million maximum and 80% purchase LTV ceiling. Commercial purchase limits do not apply to that program.

**Q: Where does up to 90% financing belong?**

Only to qualifying SBA transactions. It is not a conventional commercial or residential DSCR leverage offer.

**Q: Where do fix-and-flip and construction requests belong?**

They have separate programs, each with a $5 million maximum and minimum FICO 680. Leverage and timing are confirmed per deal rather than borrowed from commercial or rental guidelines.

## Related

- [Commercial Purchase & Rate-and-Term Refinance](https://riversidepark.capital/commercial-real-estate-loans)
- [Apply for financing](https://riversidepark.capital/apply)
- [Submit a deal as a broker](https://riversidepark.capital/partners)
- [Residential DSCR](https://riversidepark.capital/dscr-loans)
- [SBA financing](https://riversidepark.capital/sba-loans)
- [Fix and flip](https://riversidepark.capital/fix-and-flip-loans)
- [Ground-up construction](https://riversidepark.capital/ground-up-construction-loans)

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Source: Riverside Park Capital - https://riversidepark.capital/commercial-vs-sba-vs-dscr-financing