Commercial mortgages are a loan taken out on commercial real estate. Assessing credit history is more complicated with this type of mortgage and you can expect commercial mortgage rates to be significantly higher than residential rates due to increased risk.
Commercial real estate are classified into different categories and each have mortgage products tailored to them. Investment Residential real estate properties would be financed under a commercial mortgage. Commercial Real Estate fall into one of these categories.
- Pure residential, 1-4 units
- Pure residential, 5 or more units
- Residential Commercial Mixed
Residential mortgages can usually close as soon as 1 to 2 weeks. Commercial mortgages take much longer to analyses, require specialized mortgage and underwriting and can take anywhere from 60 days up to a year so plan ahead!