Dec
23
Sir Hammed asked:
I know any property with 4 units or more is considered a commercial property. That being said, can I apply for a regular mortgage for a property that has 3 units or less, or do I still have to apply for a commercial loan?
ELDON
I know any property with 4 units or more is considered a commercial property. That being said, can I apply for a regular mortgage for a property that has 3 units or less, or do I still have to apply for a commercial loan?
ELDON
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3 Responses to “Can I use a mortgage instead of a commercial loan?”
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Yes you probably can. There are many homes like that here in seattle, i had a buddy that was going to do it, but his plan was to make one of the 4 units in the residence his private residence and his banker was going to let him use a traditional mortgage.
You should probably go to your bank and ask the branch manager. If that bank dosn’t do it ask them if they know of any other banks that might.
3 family home IS a residential mortgage, not a commercial loan. UNLESS however one or more of the units is zoned as a commercial space, then you would need a mixed use loan. hope this helps!
All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrowerand are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.