Is PMI required for a commercial mortgage?

In Buying Property - Asked by joseph c. - Mar 22, 2010
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Answer(s)

Alessandra H.
Broker/Agent
Chicago, IL

No. You will be putting 20%-50% down on a property. So PMI is not needed.

Mar 23, 2010
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Harry S.
Broker/Agent
White Plains, MD

No. PMI is not needed. Depending on how strong the buyer is will depend on how much down will be required. Basic bank deal 20-30% SBA 504 10%

Mar 23, 2010
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Chris R.
Broker/Agent
Denton, TX

PMI is relative to residential sales and does not apply to commercial mortgages. Most commercial loans will require the buyer to invest a sufficient amount in the deal to be a similar buffer to potential loss as would that of a home sold with PMI coverage - which typically only covers in the 20% or so of a property value. Chris Rosprim, Scott Brown Commercial

Mar 27, 2010
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