Can you apply for a commercial loan to purchase your first investment property?

Asked by Sonya Williams, Newark, NJ Sun Jan 17, 2010

I am new to the Real Estate Investing arena

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Jake, , Wilmington, DE
Tue Jan 26, 2010
No. You would need to show investment property management experience.
0 votes
Bill Martin, , 19350
Sun Jan 24, 2010
Yes you can use commercial financing to buy an investment property, do not need business credit either. However, terms are bit more favorable if you use conventional financing with regards to rate and amortization and prepayment penalties.

I have arranged financing for investors using both and specialize in investor financing. Also, I sponsor meetings once a month at Kid Shelleens for investors, please email for more info if interested.

Bill Martin
Loan Officer
New Day Mortgage
0 votes
Interested , Agent, DE,
Wed Jan 20, 2010
Sonya, I previously answered your question but one of the other members complained to trulia and said the information I was giving you was too much...
Please contact me and I will give you all the information you need to make an informed investment decision.
I am an investor myself and can reach on a lot more than the member who complained about all the information I was giving you (crabs in the basket trying to pull you back down)...
As an investor you will run into people who try to tell you your ideas might not be sound and try to hold you back... give me a call and I will go over all the numbers with you and see if any decision you are making in real estate is sound.
Kai 302-588-7890
PS to the other members, please leave me alone to make money and I will leave you alone to make money... or just find another job.
0 votes
John Thomas, Mortgage Broker Or Lender, Newark, DE
Mon Jan 18, 2010
You typically cannot get a commercial loan on a residential property. You need to have 5 or more units to be considered a commercial loan. You don't have to have commerical credit to get a commercial loan. You are the guarantor of the loan so your credit is used to qualify. If you are looking to buy an investment property that is 1-4 units then you would apply for a residential investment loan which requires at least a 20% down payment.
Feel free to contact me about more information on a residential investor loan or a commerical loan.

John R Thomas
Certfied Mortgage Planner
Primary Residential Mortgage, Inc.
302-703-0727 Office
302-588-3665 Cell
0 votes
Carol Succar…, , Lewes, DE
Sun Jan 17, 2010
Hi Sonya, you really may not need a commercial loan for an investment property. It depends on the # of units. If you are looking for a duplex or up to 4 units you could get a traditional loan.
0 votes
David & Iris…, Agent, Newark, DE
Sun Jan 17, 2010
In order to apply for a commercial loan normally you need to have established business credit. With residential investment property just about every lender requires a minimum of 20 percent down, and in some cases up to 30 percent. That is if you can find a lender doing commercial loans. If you have any additional questions please feel free to give us a call at 302.476.2057.
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