comercial loan for SFH?

5 Replies

I was referred to the comercial dept for a cash out loan on my small 

SFH by a small town bank, because it is an investment.

Is that normal? I am not an LLC, just an individual.

should i pursue this bank or try another? thanks!

It is very odd that a loan title in your own name would be referred to the commercial dept.  That said , I would pursue any type of loan you can get. 

@Marci Stein in my experience I have found that residential loans are cheaper and you will be able to get longer financing. I have also found that commercial lenders do not want SFR on their books.

@Marci Stein  it depends on your current situation. Do you already have multiple investment properties? If so, you may no longer qualify for a conventional type loan. If your tax return income is low, or you have been self employed for less than 2 years then you might not fit in the box for a conventional loan. In those cases a commercial/portfolio loan might be your best option. Definitely shop multiple lenders/banks to see what they offer. Good luck!

@Marci Stein  

Have seen the same thing, some institutions are calling all investment properties commercial, and their residential dept. only handles owner occupied residential.

It depends on their rate and terms;  you may do better elsewhere.  It also depends on how many other mortgages you have and your credit score.  Shop around for the best deal that suits your situation.

I really only have 1 other home -both paid for, but totally just $150,00 together. Commercial is crazy ..but i will take what i can get. have to check their rates..

thanks everyone.

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