How Much Down Payment for Dental Practice Loan?
Down payment requirements vary by loan type. This guide breaks down what you'll need to put down for SBA loans, conventional financing, and other options.
SBA 7(a) Loans
Down Payment: 10%
- Minimum 10% of total project cost
- Can include working capital
- Gift funds allowed with documentation
- Seller financing can count toward 10%
SBA 504 Loans
Down Payment: 10%
- For real estate-heavy purchases
- Bank provides 50%
- CDC provides 40%
- You provide 10%
Conventional Bank Loans
Down Payment: 20-30%
- Typically 20% minimum
- 30% for riskier deals
- Must be your own funds
- Stricter requirements
Seller Financing
Down Payment: 0-20%
- Negotiable with seller
- Often 10-20%
- Flexible terms possible
- Higher interest rates typical
Total Cash Needed
Beyond down payment, budget for:
- Closing costs (2-5%)
- Working capital reserve
- Attorney/accountant fees
- Licenses and permits
- Insurance premiums
Example Calculation
$800,000 Practice Purchase:
- Down payment (10%): $80,000
- Closing costs (3%): $24,000
- Working capital: $25,000
- Total cash needed: ~$130,000
Conclusion
SBA loans offer the lowest down payment at 10%. Plan for 15-20% of purchase price when including all costs.
Get Pre-Qualified
DentalBridge connects you with lenders who can confirm your down payment requirements and pre-qualify you for financing.