I currently own 2 properties purchased with a traditional loan by dcoppit966 from Denbo, Pennsylvania. Nov 11th 2020
Any property that is more than four units (Single family, Duplex, Tri-plex or four-plex) is considered commercial property since Fannie and Freddie DO NOT purchase them on the secondary market. Simply stated, the pricing is going to be higher. As a commercial loan, depending on the lender and the borrower's qualifications, the loan may be offered with an adjustable or a fixed rate, they may also offer a loan with a shorter maturity (a balloon) and they may require more than 20% down. Those of us that are licensed to originate residential mortgages can also help put you into a commercial loan for a 6-unit property. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ At NEXA, we've got you covered. We are licensed in all states except VA and we're pending approval in MA and NY. ~ www.ApplyYes.com 480-889-9000.
Bert is correct in his information about commercial loans needed for a six unit property.I am licensed in Pa for both Residential and commercial loans. if you have additional questions you can reach me at lharvey@accutechloans.com.Typically at least 20% down is needed but with exxcellent qualifications you ccan do SBA financing at 90% LTV
Anything over 4-units is a commercial loan, so there is no central clearing house set of rules, like a standard Fannie Mae or Freddie Mac backed loan. Each lender set's their own guidelines. But you can expect at least 20% down payment.
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