I'm trying to purchase a 16 unit senior home that is currently enrolled into the USDA Rural development program. All of the lenders I have spoken to say they can only lend on a 1-4 unit property. Who do I need to talk to get a loan on this property? Is there anything else I should know? I've heard you have to live in it for a year but I'm pretty sure that's just FHA? Anyone done this before?
Sounds you need to talk to a commercial lender... Residential property is by definition 1-4 units. Anything more than that is considered commercial. Conforming residential loans require min 1yr owner occupation (unless its an "investment" conventional).
As I recall, the USDA Rural development program lends on putting up the development. The other USDA loan for buying a residential property is, well, only for residential property. I've had clients use them before.
So, find a commercial lender.. Or, find a local/state/regional bank that will originate a non-conforming loan, basically a commercial loan (okay, I consider "commercial" and "non-conforming" as synonomous).
Hope that helps. Good luck.