Financing a Warehouse Condo in Bellingham

Conventional Commercial Mortgage

Our preferred financing partner is Peoples Bank, a locally-headquartered community bank active in Whatcom and Skagit counties. Typical terms for a conventional commercial mortgage on an Iron Gate unit:

• 20–25% down payment
• 20- or 25-year amortization
• 5- or 10-year fixed-rate periods with reset
• Rates competitive with current commercial market

Call (360) 303-1450 and we'll connect you directly with a commercial loan officer at Peoples Bank who knows this product.

SBA 504 — For Owner-Occupants

If you are a small business that will occupy 51%+ of the unit for your own operations, you may qualify for SBA 504 financing. Under SBA 504, a buyer can often close with as little as 10% down, with the loan structured as:

• 50% conventional bank loan (Peoples Bank)
• 40% SBA debenture at long-term fixed rate
• 10% owner equity

SBA 504 takes slightly longer to close than a conventional loan but the lower down payment often makes it the right choice for a growing business with limited cash reserves.

Tax Treatment of Your Payment

A significant portion of your mortgage payment is tax-advantaged: mortgage-interest deduction, 39-year straight-line depreciation of the building basis, deductible operating expenses (HOA, utilities, insurance). On a typical Iron Gate purchase, the effective after-tax cost of ownership often drops 20–30% below the gross payment. Consult your tax advisor for specifics to your situation.

Estimate Your Payment

Plug your numbers into the calculator below to see the principal and interest side of a typical payment. Real commercial loans also include taxes, HOA, and insurance escrow — the loan officer will walk you through all-in numbers.