Board Topic: your response to commercial financing
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your response to commercial financing

Posted by: quinnth1 Nov 16 2004, 11:31 PM
......My apologies!!!! I should have been more clear. When I said 80/20, I meant 100% financing through an 80/20 fixed/arm on a private residential mortgage (Say 3 units), interest only. When I found this one that was 6 units, that is when I learned that I need a commercial loan which I know nothing about. The cash flow on the property is very attractive, but I only have a few thousand to put down which is why I was going to do the 80/20. The property is cheap enough that I could pay the mortgage myself if I had too.... but I don't have the 20-25% down payment needed for a commercial loan. I was trying to find a creative way of getting the down payment so I can aquire the property. I have heard of a couple different ways.... for example add the 20% to the price of the home (with the seller's cooperation), then tell the bank that I took care of the down payment with the seller and just need the loan for $220k. Would banks let that happen, or are there any other creative ways to get a down payment on a commercial loan? It is disappointing that I need a commercial on a $220k property, but being a 6 unit I have no choice. The ROI is so good that I would like to find a way to do it, even if I had to pay back the down payment quickly...

Posted by: loanuniverse Nov 17 2004, 02:03 PM
Creative financing is not the same as being dishonest. Lying to the prospective lender would be being dishonest.

The one way to do it would be to get the seller to provide you with the 25% in the form of seller financing.

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