Investor · Minnetonka, MN · Member since 2017 · 54 posts · 18 votes
Hello All,
Looking for recommendations on local banks or credit unions for commercial apartment purchase financing. Any products out there with 85% LTV, 10 year balloon and 30 year amoritization? Thanks in advance.
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Bilal A. I"m a lender that works in this space and I have not heard of a lender with an LTV of 85%. Banks are regulated and I don't think their regulator would allow that. FHA does have a 15% down program but it takes 6 months to get the loan and so its only used for refinances. You're more likely to find most banks at 75% and a few select banks at 80%. All of the 80% LTV banks I'm aware of amortizing the loan over 25 years, most balloon in 5 years. I do have a bank that will balloon in 10 and amortize over 30 years but they require 75% LTV.
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Bilal A. I"m a lender that works in this space and I have not heard of a lender with an LTV of 85%. Banks are regulated and I don't think their regulator would allow that. FHA does have a 15% down program but it takes 6 months to get the loan and so its only used for refinances. You're more likely to find most banks at 75% and a few select banks at 80%. All of the 80% LTV banks I'm aware of amortizing the loan over 25 years, most balloon in 5 years. I do have a bank that will balloon in 10 and amortize over 30 years but they require 75% LTV.
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
6y
As @Tim Swierczek mentioned you are searching for a unicorn. Will be hard to get unless you can negotiate a contract for deed and at that many people want 20% down in the commercial area. Tim would be a good resource for you, he has been able to get loans for a couple of my clients which involved a partial seller carry or a HML to take on part of the first. Some of these loan options come and go though.
Looking for recommendations on local banks or credit unions for commercial apartment purchase financing. Any products out there with 85% LTV, 10 year balloon and 30 year amoritization? Thanks in advance.
Bilal
HUD will get you 35 year am, fixed with up to 85% LTV