loans on apartmentbuildings - Posted by tom v IL

Posted by Dave T on April 29, 1999 at 23:10:08:

In my area, for lending purposes, the bank puts 2-4 unit buildings in the same category as single family homes. Under residential property lending guidelines, the bank will probably lend 80-90% of the purchase price or appraised value whichever is less under a conforming loan program.

For an in-house loan (or non-conforming loan), each bank has different rules on the percentage of the purchase they will finance, interest rate, and points.

In some instances you may be allowed to use 75% of the projected net operating income from the non-owner occupied units as income to qualify for the loan. Projected income subject to appraisal verification.

loans on apartmentbuildings - Posted by tom v IL

Posted by tom v IL on April 29, 1999 at 20:37:22:

What is the ltv for a apartmentbuilding,is there a going
rate for a loan.I’m looking to make cash offers on 2-4 units
and would like to know the ltv to offer.
thanks

Revisit: loans on apartment buildings - Posted by Dave T

Posted by Dave T on April 30, 1999 at 16:34:02:

After rereading your original post, I was not clear if you are asking about loan financing or making a purchase offer. Your subject line mentioned loans and your message mentioned LTV, but your message also said you wanted to know what LTV to use in your purchase offer.

LTV is usually used in a financing context, and I am not sure what you mean by LTV in the context of a purchase offer. Please clarify your question.

Revisit: loans on apartment buildings - Posted by Dave T

Posted by Dave T on April 30, 1999 at 16:34:02:

After rereading your original post, I was not clear if you are asking about loan financing or making a purchase offer. Your subject line mentioned loans and your message mentioned LTV, but your message also said you wanted to know what LTV to use in your purchase offer.

LTV is usually used in a financing context, and I am not sure what you mean by LTV in the context of a purchase offer. Please clarify your question.