I would like to know if it is possible to receive a commercial loan for a residential property. My goal is to invest in a residential property, either a fairly seasoned property to renovate or a new construction property. I researched all the other types of loans but everywhere I look for info about a commercial loan it talks about commercial property for commercial use and not to resale as an investment.

Thanks in advance for your help

Just out of curiosity....why would you want a commercial loan? If you are looking to buy a 1-4 investment property, you don't need a commercial loan. It is allot easier to get conventional financing vs commercial. You would need a commercial loan if it was over 5 units.

If the property is 1-4 units, you have the option of either doing a residential or a commercial loan. If the property is 5+ units then a commercial loan is needed.

The advantage to a commercial loan is that you can hold the property and the loan in a corporation name and commercial loans do not show up on a credit report except in the event of late payments or default.

The advantage to getting a residential loan is longer amortizations, lower down payment & generally lower rates. Residential loans do show up on credit.

If you are seeking to flip the property for resale, you can do either type of loan, provided that they don't have a prepayment penalty that would come into play.

Thanks for the replies guys. Commercial LO is right. The main reason for seeking a commercial loan is to have the residential property under our company name as oppose to one of our credit histories. So, do you know of places where I can receive a commercial loan to flip residential (single family) properties?

No one answered my question on where I can receive a commercial loan to flip residential (single family) properties?

Local bank