Posted by Ed Garcia on January 19, 2001 at 10:20:29:
Tom,
You’re using language that is used in purchasing a home, such as first time buyer. When you purchase 5 units or more, it’s considered Multiple Units, and you deal with a different lending community than SFR’s.
If your deal had a 1.2 to a 1.3 debt coverage ratio, with 25% down, you shouldn’t have any problem in securing financing. If you do, come back here and see me. For many lenders who do multiple units, they have a minimum loan amount requirement, so if it’s under 250,000, I would suggest a local portfolio lender.
I am looking at a six unit apartment building that is priced well and am considering making an offer.I will NOT be living in it. My situation is this: I have no credit history, Not a bad one, just none at all. However, I have as much as 25% of the price in cash that I can put down if neccessary. I have no assets and will be a first time buyer. I have very little work history on paper, but I’ve got the cash to make the deal happen. Will I be able to get a mortgage? Any creative ways in which to make this deal a little easier? I’d rather put less down of course, but I am prepared to do so if necessary for my first property. Thank you all in advance.