How does a rental get a 30 year mortgage

Question

How do I get a 30 year mortgage for a rental? Thought it had to be a commercial loan?

Alecia Loveless · Answer

@Matt Anderson Exactly what the others said on the 1-4 units.

My current lender will do a 25 year loan with 25% down on a small commercial multi family with an interest rate readjustment every 5 years so you don’t actually need to refinance the whole thing it’s automatically done. Just throwing this out to give you an idea on commercial side of things what’s possible.

Konstantin Ginzburg · Answer

@Matt Anderson

While you do have the option of getting a commercial loan; any rental unit that is between 1-4 unit is classified as a residential unit; which means it can be financed in the same manner as any residential property. The loan can be taken out in your name and you would qualify for the loan in the same way you would qualify for purchasing a primary residence for yourself. The main difference is that while there are finance packages for primary residences that allow for 3.5 to 10% down payment; most investment properties will require 20 to 25% down payment but there are plenty of financing packages that will still provide a 30 year fixed rate loan.

Doug Smith · Answer

You can do them in your own name using full documentation through a conventional loan. Some lenders will also do what they call a DSCR loan in your personal name. Most only do that type of loan to an LLC/S-Corp. It really depends on your situation. I grew up North of you a bit. I know exactly where Godfrey is! I grew up on a farm in Morgan County and, when I fly up to visit through STL I go up through Alton to Route 111 and break off right there at Godfrey and head up through Brighton...see...I know where you're area! lol