Commercial vs. Residential Mortgage

[Nick Manente]

Myself and two friends are exploring the possibility of investing in a multi-family (two units) house in Westchester County, NY. We are trying to determine the pros and cons of taking either a residential mortgage or a commercial mortgage to finance the purchase. The property is currently listed for around $700,000. Obviously there will be a difference in rates, but what else should we be considering? For example, is a personal guarantee needed for both? All comments and suggestions welcome. TIA.