5 Units Being the Cut-off Between Residential and Commercial...

[Jason Merchey]

What exactly does it mean that 5 units is the minimum to place a commercial loan on an asset? I ask becuase I have a little redevelopment project I am doing: two houses are being turned into one duplex and one rental (total of 3) and two mobile homes (total of 2). Does that equal 5? Or does that duplex really count as one, and therefore we need to tack on one more mobile home to reach five?

[Brian Garrett]

5 units is not the minimum to place a commercial loan on an asset.

It's simply the minimum number of units that requires a commercial loan.

You can still use a commercial/portfolio loan on single family, duplex, etc.