Multifamily Commercial Financing Help

[Spenser Murphy]

I want to a buy a 2-4 for unit property. 1 to 4 units falls under a residential loan. I spoke to a lender and they were very rigid in their requirements. I keep reading 5> unit properties are commercial loans. This loan type has more flexible qualification requirements, I know the lender looks more at the property's numbers than your income. What do I need to bring to the table? What is the typical down payment percentage? How hard do they look at your finances? What do they look at? I realize there are a lot different variables and possibilities. I'm new to investing so a general overview would be great. Thanks.

[Nancy Curran]

Right 25% is standard. Rarely will they do less. Some banks also have a commercial minimum. Chase won't look at anything less than a $500k deal. Lenders will look at if it cash flows. They will look at your experience. Your finances also come into play, especially if you have no experience. So with a resident mortgage, you either qualify for a mortgage or you don't. Fair housing comes into play. With commercial, you are an investor and are treated differently. A whole package comes into play here.