Question for Ed Garcia (other responses welcome!) - Posted by Izzy G

Posted by Ed Garcia on February 01, 2002 at 10:21:10:

Izzy G.

It depends on many things. First when doing a loan on a condo a lender that would do SFRs ( Single Family Resident) will want at least 50% of the building your condo’s are in, to be Owner Occupied. If so, you could go up to 90% LTV. Lenders as a rule, will be more conservative with condo’s then they will with other SFRs. So they’ll cut back their LTV.

Chances are that a broker who would handle your financing, would use more than one source to help you purchase the condo’s.

A Commercial lender as a rule will not touch your deal because you won’t have control of the building. They will not consider it a commercial deal.

The exception would be of course a local portfolio lender. If they like you as a borrower, and felt that you knew what you were doing, had good cash flow, have a track record with this type of acquisition, they would most likely do it with a blanket lien.

Ed Garcia

Question for Ed Garcia (other responses welcome!) - Posted by Izzy G

Posted by Izzy G on January 31, 2002 at 14:15:49:

I know that on commercial properties the maximum "normal LTV is 75-80-85%.

When buying a residental unit, however, financing can be at 95% or even over 100% sometimes.

My question is the following:

If I buy 12 condos in a 100 unit building, can I get financing at the 95% leve, as individual units, or at 80% as if it was a multifamily property purchase?