Commercial mortgage down payment assistance

5 Replies

Hi

I'm a Physician in New York City and I'm looking to buy a medical space to relocate to when my current lease ends next year. I found a great medical space which is over my budget and the Co Op requires a 25% which is also over my financial ability at this time.

I'm looking for advice on a commercial mortgage down payment assistance via syndication or investment and was wondering anyone has additional information on such options.

Thank you.   

@Adam Stone I have never even heard of a Physician putting more than 10% down.    I gather the Co-Op is offering this financing?    If it's possible to go for outside financing I suggest you go the 504 route and enjoy a 10% down 30 year AM.    Good luck!

Hi Tomothy, thank you. The Co Op is not financing this. Co Ops in NYC require a certain % as a down payment, this one requires a 25% down payment. Therefore I can not buy this medical space unless I come up with 25% as down payment. So what I'm looking for is assistance options to supplement my budget so combined I can pay the 25% that is required. 

I am looking at SBA loans which offer 90% financing but the Co Op requires 25% down. 

When a co-op caps the LTV to 75% that typically means no additional financing (syndication, Heloc, etc) above the 75%. What they sometimes allow is gifting for the down payment from an immediate family member. Not sure how they would view gifting when it comes to a medical space though. Keep in mind you need the 25% down and the most co-ops are going to want to see at least two years' of carrying costs (mortgage and maintenance) in liquid assets post close on top (which can also sometimes be gifted). They will sniff all this out and will want verification of the source of funds for the down payment (bank statements, cancelled checks, wire deposit receipts, etc). If this is in Manhattan or prime Brooklyn or Queens then I think this is probably as liberal as it gets. As you move further out the boards tend to get a little less conservative but I don't think any of them will allow the additional leverage. 25% down indicates to me the board this board is already on the liberal side... it only gets more conservative from there. I would explore the gifting route if that's possible. Otherwise I'd focus your search on condo spaces.

Jason Lee, Real Estate Agent
212-688-1000

@Adam Stone What kind of advice for raising the down payment money are you looking for? As a physician, I'm sure your network has some savvy investors in it. You could reach out to some investors that you know and see who would be interested in investing in the medical space. What about other physicians? Is there space for more than just you in the space you wish to buy? If so, aren't there other doctors that would like to own and work in some of this medical space?

are you sure the Co-op requires 25% down? There could be different rules for apartments in the Co-op and the commercial space. Before doing anything I would check with the managing agent to make sure those down payment requirements apply to people purchasing commercial space as well. 

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