Car Wash Loans


What is a car wash loan?

A car wash loan is a commercial mortgage that finances a car wash, which is a special-purpose type of commercial property. Car washes can be automatic and manual, and can be coupled with a gas station, auto body or repair shop or auto sales facility. A borrower could purchase a car wash with 15% down through an SBA loan. Refinance mortgages to retire a term loan are common. Cash-out mortgages can be used in first or second lien position to turn equity into cash for improvements, rehab and partner buy-out, among other things. Car wash construction loans are also available if a borrower is planning to build a new facility.

A commercial mortgage for a car wash could be used for any of the following purposes:

  • Purchase
  • Refinance
  • Refinance to get cash out of the property
  • Construction or building
  • Rehab and/or remodel
  • Acquisition and development
  • Repositioning the property in the market

What are some common types of car wash loans?

  • Commercial loans
  • $100,000 to $10,000,000
  • SBA 504 loans for your car wash
  • SBA 7(a) loans
  • Hard money
  • USDA B & I
  • Cash-out refinance
  • Bridge loan
  • No doc, stated income
  • Car wash loan rates starting at 8.55%
  • One to 5-year term
  • 40% LTV 20-year fixed rate
  • Construction loan
  • Conventional, full documentation bank loan
  • Construction take out
  •  Fast 7-day close

How do I get car wash financing?

A borrower can apply for a mortgage with a private lender, bank, credit union or hard money lender. To obtain the lowest interest rate, applications typically require full documentation of the property and borrower(s), as well as an appraisal. If a borrower needs to close the loan quickly then a no- or low-documentation loan based on the equity they have in the property may be a good option. These loans typically have LTVs around 55-65% and can close in less than two weeks. Car wash loan financing often takes the first position lien, but some lenders offer second mortgages, providing an avenue to acquire funds that can be used for remodels, expansion, landscaping or other improvements.

Find a car wash lender

If you’re a car wash business owner or manager, you might want to find a commercial mortgage broker to assist you. All of the lenders on this site work with mortgage brokers to fund loans for their clients.

What is a car wash hard money loan?

Hard money or private money loans for car washes are often offered by many non-banks and private lenders. These mortgages include alternative loan terms for borrowers. These lenders can accommodate FICO scores as low as 500, require less documentation than banks, and can close the loan more quickly. Typically, hard money financing also presents drawbacks, including a short repayment term and higher interest rates than conventional loans. Hard money loans are equity based, meaning that it’s common to see LTVs of 50% to 65%.

Which lenders offer financing options for car washes?

There are dozens of banks, private lenders and non-banks that will offer commercial car wash property loans. Find best lender for your car wash client at

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