Commercial Financing on Small Apartment Buildings
Are Loans on Fourplexes Considered Commercial Loans?
Fannie Mae and Freddie Mac will buy loans on homes, duplexes, triplexes, and fourplexes. These loans are referred to as one-to-four family dwellings. Loans on one-to-four family dwellings are usually not considered to be commercial loans.
However, if an apartment building has five or more units, a loan on such a property is usually considered to be a commercial loan.
The terms "commercial loans" and "major loans" are often used interchangeably by banks. The same loan officers who make the commercial loans for the bank also make the major loans. Major loans includes not only commercial loans, but also land development loans and residential subdivision construction loans.
You can find hundreds of banks hungry to make commercial loans, land development loans, and residential subdivision construction loans on C-Loans: C-Loans Commercial Mortgage Lender Databank.