Loans for mutifamliy rehab

2 Replies

Currently looking a building that is 7000 srqft, zoned mixed use. Want to construct 6 units inside. What is the best loan for purchase of the building and construction of units combined? Lowest interest rate and money down!

I would start reaching out to mortgage brokers in the area and explain what you are trying to do. They will tell you the best option and either offer the loan program themselves or refer you to someone else.

You won't find help from brokers. You need to talk to commercial bankers - these are folks working for small (3-5 locations) localized banks. These guys get paid a salary to find guys like you. They keep their paper on the bank balance sheet. They don't sell on the secondary market.

These are more relationship type things. They underwrite each project differently. Out of the box things like what you're describing can work.

Expect higher rate, and usually 25% down.

Good luck!