Warning: Illegal string offset 'html' in /home3/loanuniv/public_html/forums/cache/skin_cache/cacheid_1/skin_topic.php on line 909

Warning: Cannot modify header information - headers already sent by (output started at /home3/loanuniv/public_html/forums/cache/skin_cache/cacheid_1/skin_topic.php:909) in /home3/loanuniv/public_html/forums/admin/sources/classes/output/formats/html/htmlOutput.php on line 114

Warning: Cannot modify header information - headers already sent by (output started at /home3/loanuniv/public_html/forums/cache/skin_cache/cacheid_1/skin_topic.php:909) in /home3/loanuniv/public_html/forums/admin/sources/classes/output/formats/html/htmlOutput.php on line 127

Warning: Cannot modify header information - headers already sent by (output started at /home3/loanuniv/public_html/forums/cache/skin_cache/cacheid_1/skin_topic.php:909) in /home3/loanuniv/public_html/forums/admin/sources/classes/output/formats/html/htmlOutput.php on line 136

Warning: Cannot modify header information - headers already sent by (output started at /home3/loanuniv/public_html/forums/cache/skin_cache/cacheid_1/skin_topic.php:909) in /home3/loanuniv/public_html/forums/admin/sources/classes/output/formats/html/htmlOutput.php on line 137

Warning: Cannot modify header information - headers already sent by (output started at /home3/loanuniv/public_html/forums/cache/skin_cache/cacheid_1/skin_topic.php:909) in /home3/loanuniv/public_html/forums/admin/sources/classes/output/formats/html/htmlOutput.php on line 141
Commercial vs Residential Loan - LoanUniverse Community

Jump to content


Commercial vs Residential Loan


2 replies to this topic

#1 htodman

    Part-Time Teller

  • Members
  • 3 posts

Posted 25 October 2004 - 04:52 PM

I live in New York City and I am interested in purchasing a brownstone. The brownstone currently has 4 units; 2 occupied and 2 unoccupied. I intend to rent the vacant units.

The asking price is 1 million (this is New york City!) and the building needs about $50K in work. The realtor suggests that I apply for a residential loan since the rates are lower. Does this sound kosher?

#2 loanuniverse

    Administrator

  • Admin
  • PipPipPipPipPipPipPip
  • 1,251 posts
  • Gender:Male

Posted 25 October 2004 - 05:46 PM

As kosher as a Chanukah candy. I am not in residential lending, but it is a well known fact that the largest property that can be financed through a conventional residential mortgage is a 4-unit owner occupied improvement.

However, you may find some trouble getting enough money with just one loan. As you can see by following this link http://www.fanniemae.com/aboutfm/loanlimits.jhtml The limit might not be enough to finance the property. Talk to a residential lender {or two} first and see what they can come up with. I am a big fan of keeping the borrowing on the residential side whenever possible. This country does encourage homeownership so you might as well take advantage of that.

#3 Commercial Lender

    Sr. Credit Analyst

  • Members
  • PipPipPipPipPipPipPip
  • 218 posts
  • Location:New York

Posted 27 October 2004 - 09:20 PM

Yep! Commercial would be 5+ units. We are on Long Island. Give me a buzz if you have any questions about commercial.





1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users