The differences between commercial hard money loans and residential hard money loans may seem cut-and-dry, but there are some big differences you need to understand because they'll impact which type of loan is right for you. Differences Between Residential and Commercial Hard Money Loans Residential mortgage loans are intended for properties that have one to four family units. Anything above that, or a property intended solely for business (not a dwelling), falls under a commercial loan. When you require a residential loan, your personal income, debt and ability to repay a loan are reviewed before you’re approved for a mortgage.