Loan for a house

[Rikard Lorén]

Hello BP, i have been thinking about buying a house and was thinking about loans, i was wondering how it is where you live in the united states with houses, are they consindered as a private house with different rent, money & loans than if you would buy a comercial 10 unit apartment ??

Or is a residential house consindered as a comercial asap your purpose is to buy it for investing and rent it out?

Here in sweden, we have different typecodes for example, a residential house is "small house" and get something around 200 and u get to detuct 2% each year of the buildings value of what you paid for it meanwhile a rental property have a typecode around 300 and u get 3% each year instead of 2% to deduct-----> Question 1: Can i buy a house and make the bank/irs look at my property as a rental property instead of "small house" ? How is it for you in the US or other states?

Q 2: How do the IRS look at houses when you buy them for investing & renting out purposes?

Q 3: How will the bank look at the property when i come to them for a loan/what kind of loans do/can i get?

Thanks, Rikard.

[Dawn Anastasi]

@Rikard Lorén

A rental property is known as a business as you put it on a schedule C or E of your annual tax return.  This is different than your primary residence, unless you're renting out rooms in your own house.

Loans for owner-occupied houses have lower down payments than loans for rental properties.