Construction loan for mutli-family
I apologize if this gets a little long but it is a little complicated. I purchased a property 2 months ago. I financed it with a local bank at a great rate. It has 4 houses on the property, really three houses and a summer cottage. I'm going to totally rework the entire property in 2-3 phases. Phase 1 is to rebuild the primary residence on the property. It is a 3 bedroom single family the other 2 houses are 2bd 1 bath single family. I have a great loan at 3.5%. I put down 25% on a purchase price of 625k. After rebuilding the first house, which I will keep and use as as a vacation home, I will sub divide the lot. The half with this house will only have this 1 house on it. The other half will have the 2 other houses but I will most likely knock both down and build a spec house and sell it.
i'm giving all this background because it is my understanding I will need to either rebuild the current house with cash and not tell the bank I am doing it or refi out of the existing loan into a multi family construction loan. The bank that gave me this loan will not do multi-family construction loans so unfortunately I need to find someone else. I would like to be able to