Will banks finance package deals?

5 Replies

Will banks finance package deals? I assume portfolio lenders would, but not sure about big banks. For example: 3 Multi Family properties for sale at, say, 100k. Would a bank finance this even though each specific mortgage is too low? Would this have to be a commercial loan? General Advice would be highly appreciated.

@Joshua Hollandsworth Typically the "big banks" sell their loans on Wall Street and those loans must meet specific guidelines.  Portfolio lenders are local banks that lend their own money and do not sell their loans.  Local banks will generally have looser guidelines thank the large national banks which will make it easier for investors to get loans.  Experience, track record and relationships are all important ingredients when working with your local bank.

If the property is in livable condition bank will finance it. 

@Joshua Hollandsworth   You can't buy all 3 properties under one loan under conventional loan.  You can buy under commercial loan if lender allowed.  If the property is not coming under high cost loan, yes you can finance with bank.

I've done a handful of deals that local banks or credit unions would finance four properties on one commercial loan as long as everything appraises out and cash flows.

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