Commercial Loans vs. Residential Loans

More and more lenders are moving toward commercial loans on investment property over residential loans. There are a few reason for this. Lenders have started to feel that the average consumer doesn’t understand Real Estate Investing. Therefore if you want to be an investor, then you must have a commercial loan

Lenders also prefer commercial loans because they are able to charge higher interest rates, decrease the amortization length, place subsequent reviews of the loan, and even force you to take an ARM product. This all works to the banks advantage.  The trick is being able to know to work the banks to come around to your favor.

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