Today we’re going to look at the difference between commercial and residential loans. Here’s what you need to know.
The two most popular types of loans for investors are commercial and residential loans. What’s the difference between the two and which one should you use? Let’s dive in deeper.
In a lot of ways, these two loans are the same. The bank is looking to make sure you have good credit, have enough cash, and that the investment makes sense. They each also typically require a 20% to 30% down payment.
“In many ways, these two loans are the same.”
Some of the differences you’re going to see include the difference in interest rates for commercial loans. If you want to buy a single-family home through an LLC, you’ll have to use a commercial loan.
I hope this was helpful to you. If you have any questions about the differences between residential and commercial loans, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.