Why Use Commercial Funding for 1-4 Residential Income Properties?

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Many Investors choose to purchase or refinance their residential 1 to 4 unit properties with traditional conventional financing that conform to Fannie Mae or Freddie Mac Guidelines. Generally rates and closing costs are lower? Why would a Real Estate Investor choose commercial funding for their 1-4 unit properties?  

Rates are not that much higher with private money and their are way less hoops to jump through. No taxes or DTI and no cap on how many notes you have at one time. If you have the cash you can generally secure a loan. Not the case with conventical. Another plus to a private mortgage is the time it takes to close out the transaction is significantly shorter.