Commercial personal residence refinance

3 Replies

Hey all, my wife and live in a commercial property and are having trouble refinancing. We bought the property with a 203K FHA loan. We are now trying to refinance but everyone that we have spoken with has said that we will need to use an FHA loan that will require PMI, which we are trying to avoid. We owe about $360,000, and the building is worth approximately $450,000. We are trying to lower our mortgage payment which is $2,700 , and avoid paying PMI in the process. I have also spoken with our bank who gave us commercial terms which were also not as favorable as I think we can get on a personal residence. if anyone has any thoughts. Thanks so much.

@Erich Beyer "live in a commercial property" sounds like some sort of live/work mixed use property. Can you explain what's going on here? I don't think you can get a conventional loan for such a property. But then I didn't think you would be able to get a FHA 203K for a mixed use building, either. Did this start as a purely residential property and you changed it to have commercial space?

If your numbers are correct you're right at 80% LTV. So I'd think getting a loan without PMI might be possible. You'll have some costs, and you may have to come out of pocket for those. Or if the appraisal comes up short of your $450K estimate.

Commercial loans almost always have shorter amortization periods than 30 years.  Since you want to lower your payment, I assume you want 30 year amortization.  You need a conventional loan for that.

If you want to post trying to find a lender you'll need to upgrade your account and post in the Marketplace.

Thanks Jon. When we purchased the property it was already zoned commercial and I was also surprised that we were able to get the 203k loan for it. We didn't change Any if the uses. We'd like to lower our payment but our main hope is to eliminate the PMI. Thanks for the response.

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