Retail units botching my financing (and dreams)

[Arash L.]

Hi all! First time poster looking for some help.  

I am interested in a property that currently has two separate buildings on it; one building consists of two 1bd/1ba apartments (Residential Building), the other building consists of two retail stores on the ground level and one 3bd/1ba apartment on top (Mixed Building).  For some odd reason, the two buildings are on separate parcels.  Since the Mixed Building has this commercial component, my banker suggested that I ask the seller to sell the two parcels to me separately, that way, the Bank can offer me a residential mortgage on the Residential Building (30yr/3.45% fixed).

With respect to the Mixed Building, he said I would have to get a commercial loan.  I am trying to understand my options with respect to this commercial loan.  The typical 30% down, 8% interest, and 10-year term will kill the feasibility of this property.  I am currently looking into SBA options to see if I can owner-occupy the top-floor apartment and run my consulting business from there.  Any other suggestions?  I have enough money for a sizable downpayment (30%), it is mostly the 8% interest and 10-year term (i.e. the high monthly payment) that is problematic.  Asking price for the Mixed Building is around $700k.

Any chance I could get lucky and find a small bank to lend me the money on terms closer to the residential mortgage given my willingness to provide them with a large down-payment? Credit score is 840.

Thank you in advance for all your help!

Arash