Re: Financing a multi unit in CANADA - Posted by John Corey
Posted by John Corey on June 14, 2007 at 09:55:49:
To be picky…
" In the US, 1 - 4 units in the property is considered a conventional
loan while 5+ are commercial. "
1-4 unit would be residential while 5 or more is commercial (multi-
family residential). At least when we are talking about units that people
Conventional is a term used for financing and you can conventional
and non-conventional when talking about 1-4 units. The term is not
tied to the number of units.
Other minor corrections…
The commercial status is not triggered by the income produced. It is
triggered by the loan type and the ability to package the loan with
other residential loans for sale in the secondary market (Fannie or
Freddie packaging is an example). Commercial loans are not sold in
Not all commercial loans are non-recourse though it is more common