I am interested in a property that has a commercial space on the 1st floor.

Asked by Suburbndeathcamp, 01970 Tue Sep 1, 2009

I was told its hard to get a mortgage loan for this kind of property. There are only 2 units in the building besides the commercial space but the owners all pay condo fees. I can't find a bank who can help me even with 20-25% down. Any suggestions??

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Michael Giles’ answer
Michael Giles, Agent, Beverly, MA
Wed Sep 2, 2009
I believe if the commercial space is more than 30% of the square footage, you can have problems with financing. I will check with a couple of lenders later today to see what options you have. Have you asked the other owners what type of mortgage they were able to use? --Mike
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Peter Mlaguzi, Agent, Boston, MA
Wed Sep 2, 2009
If you are looking to purchase any property that is considered one whole unit (multi with a business attached to it), you will have to put 20+% down and the bank will consider this a commercial loan. Now the specific deal that you speak of has 3 condos, separate units, one being a commercial unit, the bank will be more difficult in their critic and may require more down. Please email or contact me directly for further discussion onthis matter, i can get you in contact with mortgage specialists.

Best regards,

Experience excellence

p.s. Of all of your family, friends, neighbors and co-workers, who do you think will be the next one to move, buying or selling?

Peter J. Mlaguzi III
President of Real Estate Sales and Development
O: 617-395-1496 x703
C: 617-233-1476
F: 617-395-6867
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CCC, Home Owner, San Diego, CA
Tue Sep 1, 2009
In some cases, like this one that you already search for a Mortgage it could be a very good idea to call the listing agent / broker of such properties. They must know 2 or 3 places to get a loan.
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