Dependence of Commercial Loan on existing Residential Mortgages

[Bobby Clair]

I was considering taking a commercial mortgage 6 months down the line. Right now I am eligible to take up a residential mortgage, where in I will be putting a 25% down payment. This can either be a primary residence or an investment property. 

How would this impact my commercial loan qualification in the future ? I am guessing they would look at how much debt I have, and whats my LTV on that debt(basically how leveraged I am). What is a good way to think about it ?

I know that in Commercial financing, they primarily look at the LTV & the DCR of the building. But how do they account for any residential mortgages the borrower might have ?

[Alex Bekeza]

@Bobby Clair Most commercial programs will have no cap on the # of financed rentals you own. This is one reason why most big investors eventually rely on them to scale. You nailed it - DSCR, LTV, Liquidity, FICO, and Reserves are the main components.