Financing Residential vs Commercial Real Estate (loans, loan, property, guidelines) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

Snowball000 · 01-23-2009, 12:57 AM

What is the difference in financing cost between a 4plex (treated as a non commercial prop) and a building with more than 4 units (that is considered a commercial property)?

renriq02 · 01-23-2009, 02:14 PM

depends if it's owner occupied or not

commercial loans have less guidelines in some ways but the rates are higher than conventional for the most part

residential loans are cookie cutter loans which most conform to FNMA/FHLMC guidelines

commercial loans are not regulated as residential loans are
commercial loans maybe appealing to one lender while it maybe disqualified with the other

residential loans generally have the same guidelines throughout the board