I know this is for Mtg Section But No One Answered Me

[sexycreditgirl]

If I bought a 6 family house, would that be considered a commerical mtg? And whats the diffence btw commecial and resdential?

[Ahntara]

6-unit is definitely commercial. Residential lenders will do up to a 4-plex.

Commercial is typically lower LTV, 65% or less is standard. Commercial lenders look at property value, income/return as related to expenses and debt-service ratio. Rates/terms are quite different also.

[miracle]

Sorry. I don't know the answer to this one. If it is urgent.. I would PM charles aka. firstsource or bruce ...amortgageman. Those two are the pros

[sexycreditgirl]

I guess they would not have a 100% fin on comm loans. Even if the loan was for 565,000?

[DocDon]

Moving this back to the mortgage section.

[firstsource]

When you get over a 1-4 unit place, it does become commercial.

Normally the best you are going to get, no matter your scores etc, is a loan for 80% of the value of the property. In commercial, it is value, not sales price that is the key factor.

There are a very few lenders that will allow the buyer to have 0 down. One of the wholesale lenders I have started working with will allow the seller to carry back 5%, so the buyer only has to put in 15%. This is contrasting with most commercial lenders that want at least a 25% involvement from the buyer.

My suggestion is to stay with the 3-4 unit places, they are easier to buy and easier to sell, due to the difference in financing.

Charles