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Best Commercial Real Estate Loans and Mortgages for Small. – Best Investment Property Loans: Bank Loans. While 504 loans are a great choice, they are only available for businesses that plan to occupy a majority of the space they buy (referred to as "owner-occupied commercial real estate").
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Different loan requirements. You’ll need to cover the down payment and closing costs to buy investment property. Typically, loans used for a second home or rental property require a minimum 20% down payment since mortgage insurance is not available for investment properties.