Anyone Purchase 2-4 Units with Conventional & Renovation Loans?

Question

The local bank allows me to purchase 2-4 investment units with a 30 year conventional loan + renovation loan for all fixes with 20% down

The renovation loan is kept in an escrow and paid to the contractors as the work gets done.

Anyone buying 2-4 units and doing it this way? (Instead of complicated private money or hard lenders)

Andrew Freed · Answer

@Bob Asad - Sounds like a fantastic product. I utilize these products but more for commercial multifamily where they build in an interest only period, 30 year amortization schedule, and the bank funds as much as 100% of the construction costs. Once you go commercial, the loans are a lot more negotiable since they tend to be portfolio lenders and hold the loan in house. Nonetheless to find a product like this for residential with only 20% down is pretty sweet!

Bob Asad · Answer

Yes, exactly, was thinking the same thing. I see many people complaining about needing private or hard money lenders because of the difficulty with renovation loans or bank approvals, etc. But the local bank seems to be very easy to work with.

Heath Thomas Jr · Answer

Sounds like that may be a bank specific product and a pretty sweet one at that. Fannie Homestyle requires 25% down and is only for 1 unit investment properties. That is the only other similar product most banks would be offering.

Carmen Curren · Answer

This is pretty common in Oklahoma

Anyone Purchase 2-4 Units with Conventional & Renovation Loans?

4 Replies