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yvonnel41
136 Posts |
 Posted - 07/01/2008 : 4:49:03 PM
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Hello would appreciate it greatly if anyone can offer some advice on this situation.
I have a client who wants to purchase a home for business use. He currently has both an LLC, and an INC.
I wanted to know if this would qualify as Commercial financing, in that he will be doing repairs and upgrades to accommodate the business.
If not, does anyone know of any lenders who do NOO Purchase Rehab loans?
Thanks to all, and have a great day! |
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PinnaclePeters
1023 Posts |
Posted - 07/01/2008 : 5:04:00 PM
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| If the structure is zoned for commercial use, you can get a commercial loan. |
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yvonnel41
136 Posts |
Posted - 07/01/2008 : 5:07:21 PM
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Hi Chris:
LOL, I was just reading your site, how ironic.
I know there is a school and state park in the area, and some other businesses..how can I find this out specifically??
If it is what is your max ltv?
Thanks so much! |
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PinnaclePeters
1023 Posts |
Posted - 07/01/2008 : 5:09:15 PM
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Check the county property appraiser or tax assessor's website where the property is located.
Max for owner/user would be 90% with a 600 score on a full-doc purchase, subject to Debt Service ratio tests... |
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yvonnel41
136 Posts |
Posted - 07/01/2008 : 6:17:02 PM
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Hi Chris:
It is an R-6, and I found stipulations in which a business that fits my clients guidelines are allowed..What do you think, as we only have until 7/17 to close?? |
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ComLender
1249 Posts |
Posted - 07/01/2008 : 9:28:58 PM
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| Why 7/17? I'd need a bit more information, but as long as it's commercial using and zoning is allowable, we'd be fine. |
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ccbank
1206 Posts |
Posted - 07/02/2008 : 08:42:12 AM
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| Yes this property will qualify as a commercial loan. However, keep in mind that rates for this type of property and it's use are higher than your typical commercial property loan. The owner will have to ask the city if it's allowable then obtain a Certificate of Occupancy before he can even think about getting a loan on the property. Another thing to consider is that when a residential property is converted or leased out for business use, it cannot revert back to residential use. Given ofcourse the zoning changes back to residential only with no commercial use allowed. We have done these properties in the past. The main issue is the borrowers permission from the city and obtaining a certificate of occupancy. |
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brad.easter
494 Posts |
Posted - 07/02/2008 : 09:31:05 AM
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Zoning is one issue but the appraisal is going to give an opinion as to highest and best use. If that is commercial then you are alomost there. You will probably need a "rebuild" letter from the municipality if the property is destroyed by fire.
Call if you want to discuss. |
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yvonnel41
136 Posts |
Posted - 07/02/2008 : 09:48:22 AM
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Hi Brad:
Not destroyed by fire, and appraiser said it has multiple uses.Issue funding by 7/17, and also client would like to purchase in his Corporate Name..Let me know your thoughts,and thank you so much for taking the time to reply. |
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