Mortgage Basics M o r t g a g e B a s i c s

Commercial vs residential: Commercial uses DSCR (1.2+) vs personal income, requires 25-35% down vs 5-20%, rates 5-6.5% vs 4-5%, amortization 25 vs 30 years. Switch to commercial at 5+ units. Commercial better for cash flow properties, residential for 1-4 units.