Testerthetes…, Home Buyer in Brooklyn, NY

I'm looking into a mixed use property. Will it require a commercial loan?

Asked by Testerthetester, Brooklyn, NY Tue Dec 11, 2012

The property is in Rockland County. I'm wondering if it is possible to get a standard Mortgage on a Mixed use property. If not, what are the differences between a traditional mortgage and a commercial mortgage. For example, how much larger is the down payment, and how much higher are the interest rates?

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Gail Gladsto…, Agent, 11743, NY
Tue Dec 11, 2012

If it were your primary residence, you may be able to get a residential loan.

This really is an investment property and there are differences.

Gladstone Group has a subdivision that handles commercial loans. Please call Doug or Curt Gill at 201-638-0821 or email at curtgill@msn.com or Doug Gill 201-321-5398 doug.gill@msn.com.

Either Curt or Doug will be happy to answer all of your questions.

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Julia Kushnir, Agent, Nyack, NY
Tue Dec 11, 2012
HI Derek,

Mixed use zoning may still qualify for a conventional loan (standard mortgage). I had deals like that where the client got a conventional mortgage and I own a mixed use zoned property myself which I bought with a conventional mortgage. The difference is that it's easier to qualify for a conventional loan. The question is, are you planning to live in this property? If yes, then you can get away with 10% downpayment, if not, you may need at least 20% downpayment and 6-8 month worth of PTI (mortgage, insurance, tax) payments in you reserve/saving account, in addition to closing costs.
Of course in depends on particular lender guidelines.

Feel free to contact me if you wish to discuss this further. Good luck!


Julia Kushnir
Kennedy&Kennedy Real Estate
(845) 598-6909
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