Developer · Boise, ID · Member since 2020 · 8 posts · 3 votes
Hi all,
I am looking to purchase 8-12 units in the Chattanooga area comprised of 2-3 fourplexes. I have worked with a lender in another state who will do 85% LTV with no PMI on non-owner occupied MF 2-4 units and am looking for the same type of lender in Tennessee.
Or,
Would a commercial / blanket loan be a good option here as well? I'm not as experienced with this type of loan.
Does anyone have recommendations or connections/references for a good lender that will go to 85% LTV? Any input would be much appreciated.
Realtor · Chattanooga, TN · Member since 2019 · 46 posts · 34 votes
6y
@Trever Nicoll Most duplexes they will need at least 20% down....
I think commercial might be your best option. Pinnacle Bank, First Bank (which I know you mentioned), and Tennessee Valley Federal Credit Union have commerical lines of credit and business lines of credit you could buy with. Also cash secured line of credit can be a good option.
Atlantic Capital has commercial banking loans options as well. So those will probably be your best shot.
Rental Property Investor · Denver, CO · Member since 2017 · 70 posts · 28 votes
6y
Hey @Trever Nicoll, we were shopping around for a loan on two duplexes and got a quote from FirstBank. They offered 80% ltv with a dcr of at least 1.25%. The rates were 3.75 to 4.25. Standard 5 year balloon with a 20 year am. But that was before covid. I bet they will want more in reserved and possibly more down. not quite sure what you are looking for but if you want the info on the lender DM me. Good luck!
Realtor · Chattanooga, TN · Member since 2019 · 46 posts · 34 votes
6y
@Trever Nicoll Most duplexes they will need at least 20% down....
I think commercial might be your best option. Pinnacle Bank, First Bank (which I know you mentioned), and Tennessee Valley Federal Credit Union have commerical lines of credit and business lines of credit you could buy with. Also cash secured line of credit can be a good option.
Atlantic Capital has commercial banking loans options as well. So those will probably be your best shot.
Developer · Boise, ID · Member since 2020 · 8 posts · 3 votes
6y
@Chad Lamb Thanks for sharing that information, very helpful. I do have a lender lined up that will do 80% LTV with a 30 year am. Talking to a couple lenders they said 2 months ago they could have done 85%, but with liquidity issues in todays market they are tied in at 80%.
@Charles Jabaley - I will reach out to those banks. Thanks for the input!