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Updated almost 5 years ago on . Most recent reply

User Stats

29
Posts
12
Votes
Gere W.
  • Investor
  • Granville, OH
12
Votes |
29
Posts

Commercial vs conventional loans

Gere W.
  • Investor
  • Granville, OH
Posted

Ok, what are the differences of commercial vs conventional loans? Here's what I've surmised so far:

Commercial: 

-have to put more money down (not sure what % though)

-have to make/have a lot more capital

-have to operate through an LLC/Corp typically

Conventional:

-require less money down (25% for investment, but down to 3.5% for FHA loan when living in it)

-can do through and individual (myself)

-generally better options for mortgage shopping I'm guessing (big banks, small banks, credit unions, brokers, mortgage companies, etc)

But, if say I wanted to buy a storage unit business, or build one, I would need a commercial loan I'm assuming, correct? Who actually gives these loans out? As in, who do I talk to about getting one? Would say my personal bank, Fifth Third, give me a commercial loan? How do you find these entities? Google "commercial loans" and see who pops up? 

Or say I wanted to build the above, where do you find contractors for big projects like that? It wouldn't be Joe Schmoe at basic tile flooring contracting, correct? Where do you find contractors for big jobs like that? 

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