A commercial mortgage is a mortgage loan secured by a commercial property, such as an apartment complex. Generally, properties containing 5 or more units are considered commercial. In some cases, however, aggressive lenders and underwriters may qualify 2-4 unit, investment properties as commercial.
Commercial mortgages are considered investor-friendly. The qualification requirements are typically less stringent than those of residential mortgages. Typical commercial mortgage lenders give precedence to property data and expected revenue versus the financial health of the borrower.