Need Help Please! Bank telling me anything over duplex is commerc
4 Replies
Dakoda Spencer
Rental Property Investor from Short Gap, WV
posted about 1 year ago
This is what I received just this morning from the bank:
"
This is directly from the regulation “Credit extended to acquire a rental property is deemed
to be for business purposes if it contains more than 2 housing units”.
"
I am trying to buy a 4 plex, with 20% down. Can I not get a 30 term with a fixed interest rate? The lending for rentals currently has me confused. I'd appreciate some valuable input.
This is what terms the commercial loans are, which I don't know is good or not:
10/3 ARM 6.625% - adjusting at Prime + 1.25% (Cap 2%)
7/3 ARM 6.375% - adjusting at Prime + 1.25% (Cap 2%)
5/3 ARM 5.99% - adjusting at Prime + 1.25% (Cap 2%)
3/3 ARM 5.625%- adjusting at Prime + 1.25% (Cap 2%)
1/1 ARM 5.25% - adjusting at Prime + .75% (Cap 1%)
***Floor: 4.25% ***
Andrew B.
from Rockaway, New Jersey
replied about 1 year ago
Find a new bank. You can get a 30 year fixed.
Nicole Heasley
Real Estate Consultant from Youngstown, OH
replied about 1 year ago
That bank is clearly not experienced in real estate. Find one that is.
Nathan G.
(Moderator) -
Real Estate Broker from Cody, WY
replied about 1 year ago
Talk to several lenders. Walk in and see them face-to-face rather than deal with email where your question may be misunderstood.
John Underwood
Investor from Greer, South Carolina
replied about 1 year ago
4 and less is residential. The bank is misinformed or they just have different criteria.
Talk to some other banks.