I am looking at purchasing an eleven cabin resort on a beautiful inland lake in the Midwest. In addition to the cabins, there is a 3 bedroom house + garage on the property. The asking price is $850,000 including all buildings, land and equipment. I have been told (but haven't yet confirmed) that the land itself (6 acres) is appraised somewhere around $650,000. My intention is to purchase the resort (which is a available for rent year-round and has consistently had positive cash flows) and move into the house with my family. I only have 5-10% for a downpayment. I have no commercial loan experience so I am asking for your help in determining the best way to finance this for the lowest rate possible. Is there any chance I could somehow finance this as a jumbo mortgage loan since I will be occupying the house on the premises (i.e. it will be my primary residence)? At this point, I am open to all ideas. Thanks in advance for your time.

What state? Fico? Ballpark income?

If there is positive cash flow from the resort operation, you could fund this through an SBA guaranteed loan. The LTV would be 80%--you would need to come into the transaction with at least 10%, and negotiate a seller-take-back for the other 10%. Other factors that we would consider are your personal credit and your experience in this type of business or other small business ventures. Please feel free to contact me to discuss any questions that you might have about this option.

I am not too familiar with the 504 program {easy to foget when you do one every other year}, but does this sound doable under 504 with the buyer bringing 10% and no seller financing?

SBA 504 takes second position with no seller financing and a conventional in the first.

Well that much I knew as I have underwritten a couple in the past.

However, we had some parameters from the CDCs as to the type of businesses that could qualify and I do not have those parameters handy.

I was wondering if something like this would qualify.