CHF Access half percent down brochure, pdf
Sheryl Arndt, standard needs list checked, pdf
Why Rent brochure
CHF Access income limits http://tinyurl.com/8lzf8he
Sheryl Arndt, Broker â€“ Loan Officer
If you intend to rent the home out, then it becomes an investment loan, and will have a higher interest rate, and be subject to more restrictive underwriting guidelines. This is still considered a residential real estate loan at this point. Down payments are typically 25% but can be less with higher fees or a higher rate.
If you intend on turning it into a nursing home than you are no longer in the realm of residential real estate lending. You will need to obtain a business loan from a bank. The loan will be evaluated as a business venture and could be an SBA loan or other type of financing.
Typically, these purchases will require at least 20% down (I have seen some require as much as 30% depending on the lender). And the interest rate will be slightly higher. The reason for the higher up-front costs is because of a key word in lending - risk. The rationale is that people are more like to lose their investment property if they get in a financial bind than they are their own home.
On a side note, you made mention of the property being a possible nursing home. If it is anying more than a residential 4-plex, then it would probably not qualify for a typical home loan and would fall into the category of a commercial loan, which is a whole other animal. Hope this helped. Good luck.
Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
'Serving all Your Real Estate Needs'