Much higher upfront closing costs, only provided to owner-occupied unitsConventional- Better Option for higher credit scoresPros: can qualify for 3% down payment, can use rental income, less closing costs, can be owner-occupied or non owner-occupied (downpayment will need to be higher if NOO)Cons: Higher interest rates than FHAI'd offer to help, but I am not licensed in Ohio for non-commercial loans.

An advantage they've had in the past is that you could get good non-commercial financing on them.

@Dima Kassim , I use a couple of smaller local banks for our properties - Have also gotten some lights-out financing from them as well (i.e. commercial paper, 20% down 30 yr amortization & 15 year terms... at interest rates that are nearly non-commercial)... here in the Lehigh Valley Embassy and American Bank.My tenant that was affected is with BB&T.

Website builders are great for non-commercial or personal sites.

I thought anything under 4 units is considered non commercial, but it's a multi use property so I'm not sure. 

Due to this we are in more a flip market than BRRRR market and I do not flip (not because it cannot produce good return but because I view it as a job) 2) I have some fears that the commercial residential (>4 units) finance roes will affect non-commercial residential (<5 units) and result in a significant price decline.  3) residential RE is not passive.  

Peasant.

*Non commercial loans for houses are 6.9%!

I specified in the contract (under rights) that they have portfolio/non-commercial use.

The perk is that it limits your liability to the holdings of that LLC, so I would recommend based on that.You can get lower interest rates with non-commercial loans but will eventually hit your limit.