Got a $5mill commercial loan but bank just turned me down for a $150k purchase!

Foreclosures, Short Sales, Tax Foreclosures
1

Hey guys,

I need some input on alternative financing since this market melt down has hit! I got a $5 mill commercial loan in May 2008 to develop land I own into a business park and I went to the same bank to borrow $150k to purchase a home and got turned down.

This is crazy because the same bank that gave me the $5mill loan stated that they needed to see more documents proving my ability to afford a $150k loan. My credit score is a 720 but that didn’t seem to matter much. The branch manager and small business banker told me that they were not planning on lending any purchase loans for the next 6 months.

I don’t deal much with residential because I have an off-line international business to run BUT what other finance options would someone like me have if I wanted to take advantage of the opportunity that’s in front of us…??

Any feedback please…

Thanks!

2

I don’t have a solution for you but my recent experience with Bank of America has been much different.

The mortgage amount was originally about $200k on a $235k purchase and they didn’t ask for any documents at all. Just ran my credit, confirmed my savings, and that was it.

3

I think residential loans are way harder to get these days than commercial loans. I’m advising everyone to go with portfolio lenders - small banks and credit unions.