Loan Officer Gustan Cho
Loan OfficerForum Replies Created
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There are 9 community property states.
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We do have two other down payment assistance mortgage programs that debt to income ratio goes up to 46.9% front end and 56.9 back end. The down payment assistance funds is not forgivable and needs to get paid once you refinance or sell the house. They are all FHA loans.
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Every state the office of the secretary of state is the agency that issues limited liability company and corporation registration and other licensing matters for business owners.
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The minimum down payment for a six unit multi family apartment building is 15% to 20%. You can become eligible for commercial loans on apartment buildings with zero experience if you intend on hiring a property management company.
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Correct. Mortgage industry is very ambiguous and not every lender has the same guidelines on government and conventional loans. Most lenders have higher credit requirements which are called overlays. Many lenders want credit disputes removed including exempt disputes.
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Mortgage Rates on EPM EMPOWERED DPA PROGRAM is higher than traditional FHA loans. Currently the DPA PROGRAM Rates is at 7.75%. You cannot buy down the rates.
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Felix, initially you just need the executive summary, current profit and loss and projected profit and loss. Find out if the apartment building needs work or the apartment building is stable. If the building needs work, then we should get him a short term acquisition and renovation loan. We can do this without him putting a lot of money down and cross collateralize his other rental properties. Need detailed description of the building. Address, number of legal units, type of building (ONE STORY, TWO STORY)
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I used to own, manage, and operate seven apartment complexes. Each apartment complex consist of an average of 400 units. I started with an eight unit apartment building. Apartment buildings is the safest form of commercial investment. First and foremost, the borrower needs to get a personal financial statement. Normally, all commercial loans for apartment buildings follow the same format. Get a Executive Summary Sheet: Borrower’s background, and resume. Experience in real estate, and what the scope of work is. What he wants to be when he grows up. Why should a commercial lender approve his commercial loan request for the apartment building and why the lender should be rest assured the borrower is not going to default. Amount of down payment he is putting down, cash reserves, whether he is going to manage the apartment building himself or hire a professional property management company. The executive summary sheet does not have to be long but need to state the purpose of the loan, and the scope of work. Personal financial statement forms are all basic and similar and you can get sample template online . Second, you need to get the rent roll of the property and profit and loss.
Qualifying for a loan program to purchase a 6-unit apartment building will depend on various factors, including your credit score, income, down payment, and the specific requirements of the lender and loan program. With a 728 FICO score and experience renting out properties, you may have several options available to you. Here are some common loan programs you might consider, along with the typical documents needed for commercial loans:
Credit Score: A FICO score of 728 is generally considered good for commercial loans
Down Payment: Typically, you’ll need at least a 15% to 25% down payment for a 6-unit apartment building. Down payment requirements for commercial loans can vary but are often higher than residential loans.
Documents Needed: You’ll typically need to provide documents such as:
- Business plan
- Cash flow projections
- Business tax returns
- Personal financial statements
- Property information and appraisal
- Lease agreements (if applicable)
- Environmental reports (if required)
Proof of income (tax returns, W-2s, pay stubs, rental income documentation)
Bank statements
Proof of assets
Credit report
Property appraisal
Purchase agreement
Personal financial statements
It’s essential to shop around and compare loan offers from different wholesale lenders to find the best terms and rates that suit your needs. Additionally, your rental property experience can be an asset when applying for loans, as it demonstrates your ability to manage income-generating properties.
Remember that lending requirements and programs can change over time, so it’s a good idea to consult with other or several wholesale commercial lenders just like residential loans to discuss your specific financial situation and loan options.
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This reply was modified 1 year, 2 months ago by
Sapna Sharma.
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This reply was modified 1 year, 1 month ago by Sapna Sharma.
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In general, you are who you hang out with. If you hang out with drunks, you will be a drunk. If you hang out with low esteem individuals, you will become one. If you hang out with whiners where its other peoples fault when things go wrong, you will become a member of the whiner group. If you have out with winners, you will be one. Go getters, you will be one. Bottom line is have the WTF attitude, don’t have anyone shit on your day, and at the end of the night, you can say you had a great day and I am going to have a better day in the morning. No need to sleep over negative people. Stay away from negative energy and always be grateful of being able to wake up every morning and look forward to a great positive day.
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