Purchase and repair loans New York

16 Replies

I am interested in purchasing residential multi-family homes in the Hudson Valley and am looking for homes that are in complete need of rehab. Can anyone recommend any Lenders here in the Hudson Valley region that offers purchase and repair loans?

I have been looking for similar properties in the Hudson valley as well. I have found PrimeLending to be the easiest to work with this far. However they (and a few other lenders that I've spoken to) have told me that their rehab loans are only good one 1-2 family properties - which is something I was previously unaware of. 

I’m working with Wallkill Valley Federal Savings and Loan. Did a BRRR with me from start to finish.

I agree with Will McQuire. PrimeLending is great. I have a name and number for a great rep there, and also have a lender at Movement Mortgage who closes renovation loans in less than 20 days (I can attest to this- it’s not hearsay). If you need property management, we can handle that :)

@Matt Caven have you heard/ had any experience with the lender limiting the number of units on your renovation loans? 

I never asked PromeLending, but I believe movement mortgage said it was limited to 4 units but I could be mistaken. Would you like his contact info?

@Will McGuire , @Frank Gucciardo , @Matt Caven thanks guys for your reply. I will definitely look into your suggestions. I called a couple of lenders who said they do offer what I'm looking for but they were asking for 25% down, 3.5 points and interest rates of 10 to 12% which all I thought were quite high. Especially since my credit fico score is in the 800s. In your experience are these normal rates for these kind of loans?  

25% down, yes.  The points and interest rates seem like Hard Money Lenders and not bank rates.

Are you talking to HMLs or banks?

@Matt Caven , @Will McGuire I spoke with a gentleman with primelending but he said that they do not offer purchase/ rehabs for multifamily 4 units or less unless it is owner occupied. 

Even as an owner occupied they were looking for 25% Down 

Yes 25% is required either way but they will not do the purchase/rehab if the property is not owner occupied. Is my only choice a HML?

As a Private Lender, the 2-4 family on a Non-owner Fix/Rehab/Flip credit line would run a LTC at 80% up to 95% and Rehab LTC at 85% up to 100% at the 800 fico. Rates/Fees vary between HML to Private based on what I have been seeing. Without the scenario details, I'd guess a 8.34-11.65% w/ 2 points. Hope this helps clarify the Private side of the business.

@Ed B. any different for owner occupied?? 

Originally posted by @Will McGuire :

@Ed B. any different for owner occupied?? 

 Unfortunately, these solely apply to Non-owner occupied/ Investment properties.

Getting a little frustrated. I have spoken with several lenders already ( Local banks, Primelending, movement.com etc...) and what I am pretty much being told is if I do not plan on living in one of the units I will not find a lender. Even if I just plan to purchase a 2 family home with no need for any repairs or construction loan I will not be eligible for a loan unless I plan on living in one of the units. I am being told the only way around this is a Hard Money Loan 

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