Warning: include() [function.include]: URL file-access is disabled in the server configuration in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78 Warning: include(http://www.hurryloan.com/rightbar.php) [function.include]: failed to open stream: no suitable wrapper could be found in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78 Warning: include() [function.include]: Failed opening 'http://www.hurryloan.com/rightbar.php' for inclusion (include_path='.:/usr/local/share/pear') in /usr/home/ms/domains/hurryloan.com/html/answers.php on line 78   Go Back To Search Results Question 3 unit & 2 unit buildings for purchase....residential vs commercial loans? Does anyone know a specific difference, or a ball park figure for the difference in a loan once it goes to a commercial investment. I'm looking at a 3 unit building and a 2 unit building right next door to each other. If i both both I'll I think I might need a commercial loan? Is that correct.....any help would be great! By What's your cause? Posted on 12/30/07 Total Answers 1 Answers- A 1-4 unit apartment is normally treated as a single family for loan purposes when getting a loan to purchase a single family, 2 units, 3 units or 4 units. Anything above 5 units is considered a commercial loan.You must normally go to someone else other than a residential lender. The units you are talking about you an normally go to a residential mortgage broker and secure a loan for the purchase. Now if the 3 units and 2 units are considered one and the same you are speaking of a commercial loan. If the 3 unit and the 2 unit are not attached and are free standing even if they are on the next lot over you are speaking of a residential mortgage. You should immediately contact a mortgage broker to secure a mortgage for the 3 units and the 2 units. All banks just about offer the same products and loan programs with the different qualifications in each of their programs. Your interest rate is based on your credit score and how well you have paid your consumer debt over time, not by the company that does your loan or even complete the paper work for your mortgage application. In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book. He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate. The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase. When you speak with the mortgage broker you will need the following documents to complete the loan application #1 One month of pay stubs for each person that will be on the mortgage. #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment. #3 Two years of federal income tax along with the W-2 that match. Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home.In this pre-approval letter will be the amount of house you are qualified to purchased. Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral. Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments. You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment. Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value. The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed. After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home. Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you. I this has been of some use to you, good luck "FIGHT ON" Answer by : loanmasterone On Date 2007-12-31 00:02:17   Go Back To Search Results