I’m in the process of purchasing a 5 unit apartment building in Il. The bank I may use has offered me a 6.75 3year arm for 20 years with 20% down. I would like to put less than 20 percent down. My credit is decent, over 600. Is this a reasonable offer from this bank? Would appreciate input.
Can without a doubt do better than that… my 2 cents
A 5 unit property is classified as commercial. Based on what I have seen recently that rate is probably about par.
Hello, A 600+ score is good. You should do more research with other traditional lenders and credit unions.
An HML is based on your project and not your credit. Use a Hard Money Lender (HML) as a last resort. I deal with HML commercial lenders. You will still need to have either cash available, equity in other property (or in your personal home) or collateral to secure a loan. Also, they have upfront fees and points. I hope this information helps you.
Check these lenders out if you are looking for a higher LTV.
NOTE: I’m not affiliated with these companies, nor do I recommend thier loan services, but it is my opinion that they will help you better understand what is available to you.