Property Type: Residential trust deeds are used to fund the purchase or refinance of residential properties, such as single-family homes, townhouses, and condominiums. Commercial trust deeds are used to fund the purchase or refinance of commercial properties, such as office buildings, retail spaces, and industrial buildings.

Borrower Type: Residential trust deeds are typically issued to individual borrowers who are purchasing or refinancing a primary residence or investment property. Commercial trust deeds are typically issued to business entities, such as corporations or LLCs, who are purchasing or refinancing a commercial property.

Loan Size: Residential trust deeds are typically smaller in size than commercial trust deeds. The average loan amount for a residential trust deed is often less than $1 million, while the average loan amount for a commercial trust deed can range from $1 million to $10 million or more.

Loan Terms: Residential trust deeds typically have shorter loan terms than commercial trust deeds. Residential trust deeds may have terms of 5-30 years, while commercial trust deeds may have terms of 5-10 years or less.

Interest Rates: Interest rates for commercial trust deeds are typically higher than those for residential trust deeds. This is because commercial properties are often considered higher risk than residential properties.

Underwriting: Underwriting for commercial trust deeds is typically more rigorous than underwriting for residential trust deeds. Lenders may require more documentation and conduct more extensive due diligence before approving a commercial trust deed.