Orlando's growth is driving demand for multifamily and mixed-use investment — here's how commercial financing differs from residential.
By Ryan Kennedy, NMLS #1434300 · Orlando Mortgage Broker, Icon Mortgage Group
Orlando's tourism-driven economy and steady population growth continue to fuel demand for multifamily, mixed-use, and retail development throughout Central Florida. Financing these properties works differently than a standard home loan.
Multifamily properties with 5 or more units, mixed-use buildings, retail centers, office buildings, and owner-occupied business properties are generally financed under commercial guidelines. Properties with 1-4 units, including duplexes and fourplexes, are typically financed under residential guidelines instead — including DSCR programs for investors.
Commercial underwriting typically looks at the property's net operating income and the borrower's or business's overall financial strength, rather than following standard residential debt-to-income guidelines.
Commercial financing is available for acquiring a new property, refinancing an existing one, or pulling cash out of an income-producing or owner-occupied commercial property for other investments or improvements.
If your business operates from a physical location, owner-occupied commercial financing lets you purchase the building your business runs from rather than continuing to lease.
Because every commercial property and borrower profile is different, terms are typically structured around the specific deal rather than a one-size-fits-all program — which makes an early conversation about the property and your goals worthwhile before you're deep into a contract.