| Posted by: ed Dec 3 2004, 01:02 AM |
| Hi I was told that it is very difficult to get a 30 year loan on a 6 unit building even though I would put 30% down, that the loan would have to be 15 years for the banks to consider it. Is this true ? |
| Posted by: loanuniverse Dec 3 2004, 01:22 PM |
Actually most lenders would like to place this type of property in a 5 to 10 year maturity. A couple of things to take into consideration is that while maturity is important, the amortization used in the loan is more important. You can have a loan that matures in ten years, but that is based on a twenty five year ammortization. The other thing is that the thirty year amortization/maturity is more of a residential product and that this property does not fit that mold.
How do you reconcile a shorter maturity with a longer amortization?
I am glad you asked  The answer is a "balloon payment" at maturity.
|
| Posted by: Commercial Lender Dec 3 2004, 03:36 PM |
Nope! We finance such properties everyday at 15, 20 and 30 year amortizations.
Depending on if you go stated or full doc....the rate will vary. I would advise you to check out the property taxes and expenses before you def decide to go ahead with the property. Being in Nassau County I am familiar with the tri-state area....so do give me a buzz if you have any questions. thanks! |
| Posted by: loanuniverse Dec 3 2004, 04:47 PM |
I guess I should have said most bank-lenders...
|
|
|
