Board Topic: 95-100% LTV?? owner occupied duplex with retail
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95-100% LTV??

Posted by: Zac Sep 21 2004, 04:20 PM

This is for a duplex with a retail space attached. I'm looking at the property as an owner occupied home, it seems to be a great investment, however because it has a retail space included, I seem to need a commercial loan to finance it. The problem with that is that I don't have the cash on hand to put 20% down and maintain a comfortable level of reserves. The property is fully leased, and has great income potential. Any advice?

Posted by: loanuniverse Sep 22 2004, 08:15 AM
Zac:

I am not familiar with the requirements of residential lending. Frankly, I am surprised that there is no product out there for “mixed-use” properties. Maybe not something as advantageous as a 3% down payment loan like some residential loans are, but certainly something better than the 20%-25% requirements of a commercial loan.

I guess you can either:

1- Keep trying to get someone to look at this as a residential “mixed use” loan. Hoping that a lender has a product out there that fits you.

2- Take the hit and give the 20% down payment.

3- Convince the seller to provide seller financing for the 15%. {After all you do have a good argument}. Then again, you could try talking to the seller and mention the fact that you are having a hard time getting satisfactory financing due to the mixed use nature of the property {I hope that if you already made your offer, that it was contingent on financing}, and ask him where is the property currently financed.

4- Get a partner.


Good luck


Posted by: Zac Sep 22 2004, 10:59 AM
Thanks for the advice, I think I'll try see if the seller will consider financing. I agree with you though, It would seem like there'd be someone out there with a program for me with this type of property. If it helps any of you, my credit score is 720...
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