Updated almost 3 years ago on . Most recent reply
Commercial Mortgage Question
If someone is selling a portfolio of a 4plex and 5 plex how does a mortgage company look at that? I know a quad isn't classified as commercial so it wouldn't by itself qualify for a commercial loan. Does that change when there are 9 units total or does the mortgage company look at it as two separate deals since it is two separate buildings?
Most Popular Reply
@Ryan Dyess. Depends on the lender. Ive done portfolio loans with a mix of MF 5-8 and 1-4s in one loan. These are 30 yr fixed and DSCR structure with a few more overlays, such as longer PPP, and a release cause that prevents selling one of the properties in the portfolio for a certain time period.
If that does not pencil out, then separating them into two loans. A lot of lenders have ver similar terms for 5-20 unit DSCR loans. Just depends on what numbers work best. Portfolio has one set of loans costs vs two loans have two.