Commercial loans?

[Jeremy Trubenstein]

I spoke to my loan officer today. I'm trying to secure my finances before pursuing buy and hold deals from wholesalers and refi-ing out to repay costs. My wife and I have a decent sized heloc and another $30k cash to fix. Financing the actual purchase is the issue. Apparently, they can't refi for 6 months if the $$$ was from a loan. (Including hard money) 6 months is not realistic for us if we stay on track with 60-90 day turn arounds. He told me the fix and flippers were using commercial loans and could refi the day after project completion.

I don't know anything about commercial loans or qualifying for them. Can someone spool me up? Any big differences and if you know, how do I get qualified. My wife and I together bring in just over $150k and both have 800+ credit scores.

Thank you in advance, Jeremy

[Abraham Saldana]

Biggest thing about commercial loans are that they

1. Generally have higher interest rates (between 4.5-5%)
2. Require a minimum 80% LTV

Besides that, there really isnt too much of a difference.  They do check against debt to income just like a typical home mortgage, so unless you are levered above 45-50% you'll be fine.  If you have any other questions let me know!