5 duplex package is commercial loan the only way?

Question

5 duplex package for 500k. the seller will only sell them together. i don't want to get commercial loan. besides private money is there any other way to finance this? i have 100k cash and can qualify conventional loans for 500k.

Wayne Brooks · Answer

The assumptions above, and mine, are that these are in fact 5 separately deeded duplexes, each on their own parcel ID no.  The total conventional loan limit is 10 mortgaged properties total, not just 10 conventional loans..  Note that no matter what type of loan you get, whether it be 1 or 5 different commercial/conventional/private mortgages, the "count" is the same toward your conventional loans limit.....and that would be "5 mortgaged properties" for this deal.

Jerry Padilla · Answer

@Iris L.

You can do up to a maximum of 10 conventional mortgaged properties. So as long as you will not surpass this limit, you can go the route of conventional. For an investment property duplex, you are required to put down 25% and then there are closing costs as well........ You would need more cash on hand to go the route of conventional. A SFR only requires 15% down.

Iris L. · Answer

thanks. but it's not worth it to waste my 5 conventional loan quota only for 100k property.  i think ideally i should buy 250k-300k quads using conventional loans.

LaSean Smith · Answer

I'm familiar with a couple of lenders that will do 75% LTV on up to ten conventional loans (the limit for conventionals).  No issues doing them all at once if you pick the right lender.  You might be able to find one that will do 80% LTV (to match your available $100K) at a rate that makes sense for your goals.

Scott Weaner · Answer

Have you tried to get 5 traditional loans? I never did 5 at once, but have done 2 simultaneous loans.

5 duplex package is commercial loan the only way?

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