Investor · Madison, CT · Member since 2018 · 26 posts · 12 votes
I have an opportunity to purchase a 6 unit multi fam plus single fam (both on same in-town lot) with long term rental history in the waterfront city of Rockland Maine. I know the town well. I currently own a single family in town. My question: With only one deal under my belt, how best to get a 15-20 year loan with 10-20% down on a $500k purchase? Any thoughts much appreciated!!
@Jane Johanson - Hi Jane, like @Ed Emmons said 1st National is a good place to start looking and also Camden National. I have been using Mechanics Savings Bank for my commercial purchases. Last one was a 10yr with a 20yr amort @ 4%.
If you are purchasing the property as an investment, I am not sure how you would get better than 80% LTV. At least not that I am aware of. Assuming your plan is to continue to rent this out as a hold as long as the numbers check out I would think you would not have an issue getting approved. If you were trying to take on a condo conversion or new construction project that would present some issues. Mostly they care about debt service coverage ratio on the property and your personal ability to carry the property if it came down to it. If I were in your position I would try to speak with local banks as they are typically more flexible for lending.
@Jane Johanson - Hi Jane, like @Ed Emmons said 1st National is a good place to start looking and also Camden National. I have been using Mechanics Savings Bank for my commercial purchases. Last one was a 10yr with a 20yr amort @ 4%.