All Forum Posts by: Marquise Lee

The property is mixed use (2 apts above a commercial ground level).  My understanding is that you can't get a conventional on a multi-family or commercial investment properties.  am I missing something?

Hi all,  I'm wondering if it's worth looking into refinancing w/ a commercial loan?  I currently have a 3 unit Mixed-Use property that I acquired 3 years ago under a FHA 203b (30 years @ 4.625% + Mortgage Insurance).  I've got 35%+ equity and I'm thinking even if I end up with a higher rate, I'd still see monthly savings w/ a commercial loan because I wouldn't be forced to carry mortgage insurance.   Is this assumption correct?  What are the rates today for mixed use properties @ 30 year amortization?

Hi Jerry,  The commercial space is approximately 1500 sqft (plus 600 sqft below grade).  The residence would be approximately 2400 sqft.

I will definitely want to owner-occupy the residence.

Hi All, I'm in need of assistance with the best way to approach financing for a large home that is zoned residential (RSA-5) in Philadelphia. 

My original lender rejected the deal because for the last 50 years the home was used as a funeral home on the first floor with an owner-occupied residence above (they uncovered variances with the city indicating such). I've talked to 2 other residential lenders since, both of whom don't think they can get the deal done either.

Anyone have thoughts on how to get this approved? FHA 203k? Commercial? Keep calling residential lenders?

Additional things to note: 

- The purchase price $535k, which is above the FHA limit ($484k) for Philadelphia
- A full renovation ($80-100k) is necessary as it hasn't been updated in close to 40 years. If permitted by zoning, I'd be interesting in keeping the 1st floor commercial as I plan on starting my own business down the line.
- I can pull together approx $160k to make all of this happen.
- My current property is currently under an FHA loan but I'm willing to refinance if that makes the most sense.

Michael, I was hoping to do a 203k to renovate and occupy the first floor which is currently in shell condition.  Based on what you've showed, It doesn't look like I'll be able to get this done with a 203k unless the seller was willing to wait for the use permit to go through.  I've heard from several people that it would in fact take 4+ months and may still not get approved.  

If I were to go the commercial route...
1) what type of should I expect? Term, Rates, LTV maximums? Owner Occupied requirements?
2) is there a way to roll renovations into the loan?

Ultimately, I just want the property.  If residential doesn't work, I'd be fine with trying to get a commercial tenant.  Currently I could scrape together enough to put 25% down... If I had to (would rather not)... If I did I wouldn't be able to do repairs for a long while.  Another option I could investigate would be to pull equity out of another investment property I own that's currently at about 50% LTV.

I'm under contract on a cmx-1 building with 3 units. The top 2 units are residential and the first floor is in shell condition. The first floor is permitted for commercial/office use however I'd like to change it to a owner occupied residential unit. I believe with CMX-1 this would be a by right use, however I'm being told I'll need to get a change of use permit AND it may still get rejected.   I'm also being told the permit process may take 3-5 months.  Does this sound right?

I'm worried the lender won't approve the loan until the use permit is in place, and I'm certain the seller won't agree to wait 3-5 months.