Commercial Loans for a SFR??
Hey all!!! Thanks for your help ahead of time! So my question is about the benefits of using a commercial loan for a SFR. Here is some information on my situation.
We are nearing the end of the rehab on a SFR with the ARV of 50-55K and are looking to refinance. This property is in Michigan, all banks in this area do 15 year mortgages around 5% interest rate for rental homes with traditional mortgages. When speaking with the banks they are pushing us to explore commercial loans. Their terms, depending on negotiation, range from 5 to 10 year balloons (possible renegotiations of terms after this timeframe) and 15 to 20 year amortization schedules with 75% LTV.
Okay so now that I'm done blabbing, do you see benefits to using commercial loans on individual residences? Building rapport with the lender? Positioning us to move on bigger deals more quickly since we have a track record? Am I missing something important?
Thanks for your help!!!