Centreville, AL · Member since 2020 · 32 posts · 4 votes
Hey folks - was on the phone earlier with a loan officer at my local bank. Getting my feet wet. Asked about 30-year loans on commercial properties (since rentals are classified as commercial properties, I learned). He said there really is no such thing as a 30-year loan on a commercial property. 15 years, but not 30.
So, I'm puzzled - I've heard tons of folks on the BP podcast say they have however many rentals, and they are 30-year loans, and their tenants are paying the monthly loan payment, and so on. I've heard similar things in the BRRRR discussions - they got a hard money loan, rehabbed a property, then refinanced their rental into a 30-year loan.
Am I confusing terms? Or am I missing something? Is refinancing a rental (commercial) property (say one that you purchased and rehabbed with hard money) into a 30-year term totally different from trying to purchase a rental (commercial) property with a 30-year loan?
Hey folks - was on the phone earlier with a loan officer at my local bank. Getting my feet wet. Asked about 30-year loans on commercial properties (since rentals are classified as commercial properties, I learned). He said there really is no such thing as a 30-year loan on a commercial property. 15 years, but not 30.
So, I'm puzzled - I've heard tons of folks on the BP podcast say they have however many rentals, and they are 30-year loans, and their tenants are paying the monthly loan payment, and so on. I've heard similar things in the BRRRR discussions - they got a hard money loan, rehabbed a property, then refinanced their rental into a 30-year loan.
Am I confusing terms? Or am I missing something? Is refinancing a rental (commercial) property (say one that you purchased and rehabbed with hard money) into a 30-year term totally different from trying to purchase a rental (commercial) property with a 30-year loan?
Get a NEW LO!
YES, you can REFI into a 30-y term. A 15-y a 5 ARM 7 ARM 10 ARM. All of the above.
Lender · New Smyrna Beach, FL · Member since 2017 · 122 posts · 54 votes
6y
What @Kerry Baird said, 5+ units and you're in commercial loan territory. You're also in commercial territory anytime there's a retail/office component mixed in with apartments (any number). Then the amortization can still be 30 years, but the loan term will typically be 5, 7, 10. There are some 30 year fixed commercial lenders, but they are higher rates.
Centreville, AL · Member since 2020 · 32 posts · 4 votes
6y
@Kerry Baird and @Tim Milazzo - then why did the loan officer tell me that rental houses are commercial? We weren't talking about mixing retail/office and apartments - context was simply rental houses. Is it a state-by-state thing?
Lender · New Smyrna Beach, FL · Member since 2017 · 122 posts · 54 votes
6y
@Kyle Shepherd - you may be talking to a less informed loan officer. You can get a residential mortgage on rentals. Maybe you should chat with a good resi mortgage broker.