Can I combine the loan on 2 properties into one?

4 Replies

l am planning to purchase 2 properties. Is it possible to take a combined loan (one loan) for both built into one loan? by that saving some loan fees and overall closing cost? I have heard, it is not possible given the title and other stuff has to be dealt separately but wanted to see if there are ways to deal with this.

@Gaurav A. I guess it would be "possible" but there will be a LOT of restrictions to this type of a loan.  Generally, these are called "blanket loans". A blanket loan would be likely the loan has a minimum, usually $500K+...I have seen rare cases of $250K.  It is also likely that the loan would not let you break up the loan without serious penalties.  So if someone offered you a killer deal to buy a would pay a big penalty and then have to pay the fees all over again to refinance the home you kept.  

Please don't hear what I am NOT saying...this loan might be exactly perfect for you.  Maybe the houses are worth a good amount and maybe you only would consider selling them in a package deal later.  So if it is still a product you are looking for then post "Seeking a blanket loan in X City" in the specific state forum you are looking to buy in.  Maybe even post that same topic in the commercial forum too.  Those forums might get you where you need to go.

Good luck!

@Gaurav A. , I have done some loans like you are suggesting.  Mine have always been with a smaller local bank.  If you have all of the money for down payments etc. I would think it is possible.  It might be tougher to get a loan in your personal name with 2 properties.  My loans on more than one home has always been under my company name.  It sounds like you want to do a new purchase of both at once.  The timing can be tough as both need to close at the same time and the sellers might have conflicts on when they can close.  I really like refinancing a loan to buy a second property.  I have done those with no money down where I have a lot of equity in the first property.  The drawback is if you want to split the properties up later to sale.  you have to negotiate with the bank before you sale on how much of the proceeds will be applied against the loan balance.  If you do not work that out the entire amount of proceeds go to the existing mortgage.

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