Lender · Nat'l Commercial Mtg Lender - Round Rock, TX · Member since 2014 · 916 posts · 235 votes
5y
@Ryan Cleary the only way you could utilize SBA funding is if the property was affected by disaster, which is the SBA Disaster loan or if you apply for the new PPP loan that is coming out. The typical 7a and 504 SBA would not lend on 10 unit complex because your business would not occupy 51% or more of the property. As far as financing a 10 unit apartment complex, the down payment is 20% to 25%. Some lenders will be looking for you to own your primary residence because it shows the lender you will not be living in the property.
Specialist · NY · Member since 2016 · 82 posts · 60 votes
5y
Hello Ryan,
SBA financing would require at least 50% occupancy and FHA lending would work for 2-4 units.
You may need to reach out to a few mortgage brokers on this one. The only other option I could think of would be a private mortgage though a 3rd party or if the owner held the note. Then once you build up enough equity you could refinance through a local lender.
Lender · Nat'l Commercial Mtg Lender - Round Rock, TX · Member since 2014 · 916 posts · 235 votes
5y
@Ryan Cleary the only way you could utilize SBA funding is if the property was affected by disaster, which is the SBA Disaster loan or if you apply for the new PPP loan that is coming out. The typical 7a and 504 SBA would not lend on 10 unit complex because your business would not occupy 51% or more of the property. As far as financing a 10 unit apartment complex, the down payment is 20% to 25%. Some lenders will be looking for you to own your primary residence because it shows the lender you will not be living in the property.
Investor · Palm Beach County, FL · Member since 2019 · 370 posts · 330 votes
5y
Thanks for the info Karen! I know this is uncommon but my thought was to occupy the 10 unit (I say 10 units just for reference). Thanks for everyone's input!