I recently applied for a new construction loan (10%) with Ameris Bank but she mentioned that most banks do not offer 10% construction loans on multi-family or in this case a duplex. My wife and I are looking to build a duplex for our primary residence but I'm striking out with loan options.
Trying to see if anyone has ran into this before or know of lenders who offer 10% new construction loans for duplexes?
@Codey Yingling The answer is generally correct. Owner occupied construction loans are for stand along single family properties. Construction loans are portfolio loans on the banks book, so the bank is taking a significant amount of risk.
That doesn't mean that it can't be done. You would have to creatively structure the loan to reduce the risk and then some banks might be willing to take it one.
At the end of the day, banks want to do a loan (that's how they make money), just not be stuck with it.