primary res mortage?
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primary res mortage? (by Ken [MA]) May 31, 2023 12:06 PM
       primary res mortage? (by jonny [NY]) May 31, 2023 2:19 PM
       primary res mortage? (by Ken [NY]) May 31, 2023 3:00 PM
       primary res mortage? (by Barb [MO]) May 31, 2023 3:49 PM
       primary res mortage? (by Barb [MO]) May 31, 2023 3:50 PM
       primary res mortage? (by DJ [VA]) May 31, 2023 4:48 PM
       primary res mortage? (by Johnny B. [MA]) May 31, 2023 5:23 PM
       primary res mortage? (by MikeA [TX]) May 31, 2023 5:29 PM
       primary res mortage? (by S i d [MO]) Jun 1, 2023 8:56 AM
       primary res mortage? (by Oregon Woodsmoke [ID]) Jun 1, 2023 9:27 AM
       primary res mortage? (by Ken [NY]) Jun 1, 2023 10:43 AM
       primary res mortage? (by zero [IN]) Jun 5, 2023 11:49 AM


primary res mortage? (by Ken [MA]) Posted on: May 31, 2023 12:06 PM
Message:

So maybe I made a mistake,..all my buildings are paid of 8 of them... and I want to upgrade one with a new roof porch etc. want to pull out about 50K as I did the same several years ago and actually paid it off very quickly,

Well I called the same bank and asked to do it again,..so the person wants not to do the same property (has an apt which I occasionally stay at,upstairs .and a small office. on the first floor, I have owned this since 1972,.. So she called back saying that they were only willing to do my "primary residence, and that I would have to go to their commercial dept for that loan.

she has been hard to get so I don't have an answer to what disadvantage that would entail, over 35 years that one other money pull out was ever done on the dual property.

I feel its still my home but she apparently feels otherwise

So do you know of any advantage/disadvantage in doing it thru the commercial dept? --66.30.xx.xxx




primary res mortage? (by jonny [NY]) Posted on: May 31, 2023 2:19 PM
Message:

I wouldn't think it would be commercial unless it has more than 4 apartments/ units? Anything under 4 (unless it's zoned commercial, of course) is usually considered residential. --69.201.xx.xxx




primary res mortage? (by Ken [NY]) Posted on: May 31, 2023 3:00 PM
Message:

if the house is owned by a corp or LLC banks will often call it commercial,is the why? I would not put a mortgage on my primary residence --74.77.xx.xx




primary res mortage? (by Barb [MO]) Posted on: May 31, 2023 3:49 PM
Message:

Unless you need the roof and porch ASAP, with paid off property, I would just save up for a few months and pay cash. Commercial loan rates right now are too high.

My guess is that for only $50K, they donít want to do the paperwork. --149.76.xxx.xx




primary res mortage? (by Barb [MO]) Posted on: May 31, 2023 3:50 PM
Message:

Unless you need the roof and porch ASAP, with paid off property, I would just save up for a few months and pay cash. Commercial loan rates right now are too high.

My guess is that for only $50K, they donít want to do the paperwork. --149.76.xxx.xx




primary res mortage? (by DJ [VA]) Posted on: May 31, 2023 4:48 PM
Message:

I've run into that too, with property owned by the LLC.

I started to learn what all I had to do for a commercial loan & decided instead to buy the next house in my personal name - because I planned to get a HELOC on it, & knew it would be much easier.

I'm not worth much (lol), so not worried much about ambulance-chasers.

The HELOC also makes it look encumbered if anyone wants to look.

I think Barb makes good sense, while you decide what to do about taking on debt (or the appearance of it - like a heloc) in the future. --174.47.xxx.x




primary res mortage? (by Johnny B. [MA]) Posted on: May 31, 2023 5:23 PM
Message:

I donít see any reason why they would require commercial unless itís not owned in your name. If you need money for a short term HELOC is probably your best bet. On primary residence you should be able to open this for only the cost of the appraisal versus $5k+ closing cost on a commercial loan. Rate will be around 7% though. Some banks have intro special rates for first 90 days or so. If you have a Salem Five near you they are good to work with. --73.60.xx.xxx




primary res mortage? (by MikeA [TX]) Posted on: May 31, 2023 5:29 PM
Message:

Be careful claiming that building as your legal residence on loan paperwork when it's not. That's called fraud and it can get quite costly when you get caught.

The only downside to a commercial loan is that the interest rates are typically 1-2% higher than personal residence loans. I'm past the getting loan stage but when I did my banker would do an unsecured loan for anything under $50K knowing those were short-term loans and not worth the hassle. He knew the LTV on my properties was very low so the bank had little risk. --209.205.xxx.xx




primary res mortage? (by S i d [MO]) Posted on: Jun 1, 2023 8:56 AM
Message:

Typically anything a bank can't repackage and sell on the secondary market falls under their "commercial" lending, even if it's not strictly commercial property. So if this loan wouldn't qualify under the normal conforming residential lending, that's why they're calling it commercial.

Commercial loans are more flexible in many ways and involve a lot less paperwork usually, but they carry the following negatives compare to conforming residential:

1) Higher interest rates.

2) Short fixed rate, then variable rates. 3/1 or 5/1 are common.

3) Some have balloon payoff requirements of 2 - 5 years.

4) More stringent LTV requirements, often no greater than 80%.

But they have the following advantages:

1) Faster and easier to qualify.

2) Bank keeps the loan in their portfolio so it's not getting resold.

3) Much more flexible usage and property types.

4) Not always reported to credit bureaus.

The other thing is banks usually want annual financial statements (tax returns, PFS) to document that you're still a stable risk. Typically they require that in the loan paperwork, and if you refuse to provide it they may have a provision where they can call the loan due early.

--184.4.xx.xxx




primary res mortage? (by Oregon Woodsmoke [ID]) Posted on: Jun 1, 2023 9:27 AM
Message:

Mostly the difference is that commercial loans are mostly amortized over 20 years but expire and have to be refinanced at 5 years.

How nice is your car? The last time I needed to do expensive repairs, I took out a car loan and used that. The bank doesn't care what the money is used for as long as they get the title to the car as collateral. With my credit union, car loans are relatively inexpensive, no more than the mortgage rate and they are easy to qualify for. --76.178.xxx.xxx




primary res mortage? (by Ken [NY]) Posted on: Jun 1, 2023 10:43 AM
Message:

Oregon,i like that idea --74.77.xx.xx




primary res mortage? (by zero [IN]) Posted on: Jun 5, 2023 11:49 AM
Message:

I just quit claim the property back into my name for the refi. Have even had the title company do it for me.

Then when I am done with the closing I give it a week and quit claim it back into the LLC.

Have never had an issue. All the properties are in the LLC and most have loans on them.

Now with the situation that Ken has I do not think that would be considered a PR anyhow. Unless it is already a commercial property I don't see why he couldn't just get a non OO loan via cash out refi and do what he wants. Higher rate but shouldn't be a deal changer. --107.147.xx.xxx





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