Details about Commercial Loans

[Jennifer Fernéz]

Hi there,

I was recently looking at an FHA owner occupied mortgage for 1-4 units. My lender said that we could count 75% of the rental income towards income towards my debt to income ratio.

However, I recently came across a 41 unit property near my home town where the numbers may make sense.   Im wondering details how commercial loans work.   What is the lowest percent down, what percent of rental income can be used for debt to income, and any other information anyone can provide would be extremely helpful.

thanks,

Jennifer 

[Andrew Postell]

@Jennifer Fernéz purchasing a commercial property such as the one you are describing usually requires 20%-35% down depending on the current rent rolls.