Auto repair shop property loans
Financing to buy, refinance or build an auto mechanic shop or car service center, with or without income documentation. We place your loan with the lending partner that fits.
The pre-qualification form takes about a minute.
Programs that fit auto repair property
How you finance an auto shop depends mostly on one question: will your business operate there, or are you buying it to lease out? Your loan expert will sort out the right path with you.
- SBA 7(a) loans. Government-backed loans for owner-occupied property, meaning your business operates from it. Generally up to 90% loan-to-value (LTV), the loan as a share of the property’s value. That means a smaller down payment than most other options.
- Conventional commercial loans. Work for owner-occupied shops and investment property alike. Up to 85% LTV with full income documentation.
- No income verification loans. Qualify on the property and your assets instead of tax returns. LTV is typically around 70% depending on the scenario.
- Construction loans. Build a new shop through a conventional construction loan or an SBA construction loan, as long as your business will occupy it. SBA typically goes up to 88% LTV on construction and conventional up to 85%.
- Hard money loans. Short-term, asset-based financing when speed matters most. Offered in Georgia only.
Seller financing. On a purchase, the seller can carry up to 20% of the price as a seller second mortgage. That second loan sits behind the main loan and lowers the cash you bring to closing.
The minimum loan on commercial real estate programs is $250,000.
What lenders look at
Occupancy
Owner-occupied deals open the door to SBA financing and higher leverage. Investment deals rely on the tenant’s lease and the property’s rent.
Business cash flow
On an owner-occupied shop, the business pays the mortgage. Lenders review its financial statements and tax returns to confirm it can carry the payment. For investment property, they use the debt service coverage ratio (DSCR): net operating income divided by annual loan payments.
The property and the site
Auto service properties have specialized features like bays, lifts and storage for fluids. Lenders commonly order an environmental review on these sites, so plan time for it.
Down payment and equity
Your down payment depends on the program. SBA asks for the least, no income verification the most. A seller second can close part of the gap.
Credit and experience
Lenders want to see that you know how to run a shop. Industry experience counts, especially if you are buying an existing business.
Buying an existing shop with its business? Tell your loan expert early. The property and the business can be financed together or separately, and the structure affects which program fits best.
How it works
- Apply online. Complete the 1-minute pre-qualification form with your property and loan request.
- Talk to your loan expert. You are assigned one Standout loan expert who reviews the deal and identifies the programs that fit.
- Compare your options. Your loan expert presents the best available options from our lending partners.
- Close. We package the file for the lending partner you choose and guide you through to closing.
For a longer walkthrough, read how to finance an auto repair shop.
Common questions
Can I use an SBA loan to buy an auto repair shop?
Yes, if your business will occupy the property. If you are buying the shop as an investment to lease out, a conventional loan is the route.
Can I finance an auto shop without income documentation?
Yes. No income verification loans are available, with loan-to-value typically around 70% depending on the scenario.
What loan-to-value can I get on an SBA or conventional loan?
In general, SBA loans go up to 90% loan-to-value and conventional loans up to 85%. On construction, SBA typically goes up to 88% and conventional up to 85%.
Can the seller finance part of the purchase?
Yes. A seller can carry up to 20% of the price as a seller second mortgage, which reduces the cash you need at closing.
Can I build a new auto shop?
Yes, through a conventional construction loan or an SBA construction loan, as long as your business will occupy the finished property.
Explore the programs
All loan programs- Loan program SBA 7(a) loans for commercial real estate Buy, build or improve the building your business operates from, with a lower down payment. Repayment up to 25 years
- Loan program Conventional commercial loans Bank and credit-union financing. For strong credit and full documentation, usually the lowest-cost path. Banks and credit unions
- Loan program No doc commercial loans No tax returns or pay stubs. Approval rests on your credit, your assets and the property. No tax returns needed
Ready to take the next step?
Apply in about a minute. Your loan expert will guide you from there.