Cannot find a conventional 30 year lender for a single family home

[Jared Clukey]

I bought a STR last year through a bank using the traditional 20% down method with a 20 year commercial loan. I am buying a single family rental this year and looking for financing and I'm fine with paying 20% down but would really like to use a conventional 30 year but every bank/credit union I've called will only offer commercial loans 20 years or less. They said it has to be commercial since it will not be a primary residence. I was looking to stay away from a DSCR (if possible) only because I will get a better rate on a conventional 30 year and need the lowest rate as possible considering cash flow will be fairly tight in this current economic environment. Is this always the case? Any input would be greatly appreciated. Located in Maine

[Bill B.]

You are talking to some VERY new loan officers with bad teachers/bosses. 

Nothing they are saying is true. I assume you’ve gone to a mortgage broker and gotten 20 offers for 30 year fixed rate mortgages on your rental purchase?

the only time you need to consider  commercial loans is 5 units or more or 11th property and beyond. And even then you don’t NEED a commercial loan.