Finance
What is a commercial real estate mortgage compared to a residential mortgage in Nevada?
ACommercial mortgages always have lower rates than residential
BCommercial mortgages are typically for income-producing properties, often have shorter terms with balloon payments, require higher down payments, and are underwritten based on property cash flow rather than borrower income✓ Correct
CCommercial and residential mortgages are treated identically by Nevada lenders
DCommercial mortgages are regulated by NRED
Explanation
Nevada commercial mortgages differ from residential: they are typically underwritten based on the property's cash flow (DSCR), require 25–35% down, have higher interest rates, shorter amortization terms with balloon payments, and are less regulated by consumer protection laws.
Related Nevada Finance Questions
- What is the primary purpose of Fannie Mae (FNMA) in Nevada real estate finance?
- What is a wraparound note in Nevada seller financing and what due-on-sale risk does it carry?
- What is a recourse versus non-recourse loan in Nevada real estate?
- What is the Nevada Housing Division's first mortgage loan program for first-time buyers and what are the general income limits?
- The Truth-in-Lending Act (TILA) requires lenders to disclose the:
- What is 'PITI' and why is it important for Nevada mortgage qualification?
- A Nevada home buyer obtains a 30-year fixed mortgage at 7% for $400,000. What is the approximate monthly principal and interest payment?
- What is a 'hard money loan' in Nevada real estate and when is it typically used?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →