If I were to apply for a mortgage to buy a multi-family dwelling for the purpose of renting/leasing to tenants would this be considered a personal mortgage or a business loan? Detailed info for this question would be greatly appreciated!
Business or Personal loan?
Hello,
This loan would be considered a personal mortgage! Do you have a primary residence already? If not you can stay in the property and rent out the others. But the lender would want to see rent rolls(or possible rents and what it would be over a years basis, minus maintenance and etc.). If you do have a home already, this loan would be considered an investment property where you would have to put money down to secure the property and the rate would not be as favorable because it is a non owner occupied property and will be used just for investment purposes.
Please consider the rents involved in all units to make sure that you are able to cover the note as well as maintenance and be able to walk away with some property. If you will be staying in the property rent free, make sure that the other units generate enough income to pay the mortgage note/maintenance and other unexpected expenses. I hope that i was helpful in answering you question.
Business or Personal loan?
Neither, it would be a real estate loan.
Personal Loan is a finance that helps a person to deal with the financial problems of the life. It is an unsecured deal that does not demand any collateral and offers instant money. Even I had applied for an Axis Bank Personal Loan when I was facing a financial crunch.
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