Commercial loan or personal mortgage for 3 units?

[Jennie Seitz]

Hello there,

Bit of a newbie here.. and I'm wondering if you could help me. 

I'm looking at purchasing 3 units that the owner is selling all together. It's not exactly a triplex, so the personal mortgage lender would have to do them as three separate loans with 20% down each. As the closing costs will be higher doing them separately, do you think it would be better to have a commercial loan that is fixed for 5 years and with 25% down or stick to the three separate ones? 

I don't have all the details at the moment, but thought I'd see if anyone with experience in this area could give me an idea of which might be the best route to take if you have e.

Thanks so much!

[Corby Goade]

Has your lender told you they would have to do three separate loans? If they are on one tax parcel, I'd think you should be able to do one. If you can do a conventional loan, you'll get better rates, might get better terms on the commercial side, but it's really a matter of what works best for your situation, one isn't necessarily objectively better. 

Good luck!