Financing in Jamaica Plain>Question Details

simulatednir…, Home Buyer in 02130

Looking for financing for an investment property.

Asked by simulatednirvana, 02130 Fri Jan 11, 2013

I own a unit in a 3-unit condo in Boston (and I am living there as well). I am interested in purchasing a second unit within my condo, by my mortgage broker says I cant qualify for an FHA loan and need to think about a commercial loan. The maximum down payment I can afford is 15%...perhaps 20% if I push it. What are the other avenues for me to get a loan at reasonable interest rates

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5
Moy Lopez’s answer
You will need a lender that will keep the loan in their portfolio so that they will not have to worry about selling it in the secondary market. You will need at least 20% down as you will not be able to get mortgage insurance on the investment property. You will own 66% of the total units in the complex which is anther reason whu most lenders will not be able to help you.
0 votes Thank Flag Link Sun Jan 27, 2013
On an investment property condominium unit you need to put down 25%.
1 vote Thank Flag Link Fri Jan 11, 2013
You also need to be aware that many investors will have an issue with 1 unit owner owning multiple units. For condos with 10 units or less, no single owner can own more than 1 unit within the building and obtain conventional financing. Exceptions can be requested if the unit being purchased will be occupied as a primary residence.
0 votes Thank Flag Link Sat Jan 12, 2013
Unfortunately you are getting correct advice. It may be very difficult to find financing with 15% down for an investment property in a building where you will take up majority ownership. Some of my investor clients have had good luck with TD Bank.

Territory.com
Massachusetts Premier Buyer Brokerage
617 848 5407 x 701
Web Reference: http://territory.com/
0 votes Thank Flag Link Sat Jan 12, 2013
Try for a portfolio loan with you r current mortgage company if they offer it. You are in an investor market and a commercial loan is applicable and minimum down payment is usually 25%.
0 votes Thank Flag Link Fri Jan 11, 2013
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