Hi all, I just purchased a commercial building and am looking to build out an apartment on the upper floor. I've secured all required zoning/permits to begin work, but was wondering what kind of financing options there are? Can I apply for a standard PenFed equity loan, mortgage, etc.? The property is valued at around $440,000, and I have a building loan for $120,000. Obviously I could look at an SBA 504 or 7(a), but I'd rather stay away from the 5.5% interest rates from those products and get the 3% from a place like PenFed.....
I don't see how you could get residential-style financing on this.
Senior Member - 3K
posted: Feb. 17, 2013 @ 5:19p
An equity line to get around the hoops of a traditional construction loan, then refinance into permanent financing once it's finished? How much do you need for the renovation?
posted: Feb. 17, 2013 @ 6:09p
I'm looking to get around $150k. I should have worded my first post a little better, I've already dumped about $200k of my own cash into the place. I'm just looking to maintain a little bit of liquidity. I can keep funneling my own money into it, but I was hoping to use someone else's at a low interest rate.
posted: Feb. 17, 2013 @ 6:10p
Ask PenFed. Their CSRs will not harm you if you propose something that is not doable, you will need to let the lender know everything at some point. Having gone through zoning hassles, you will have the plan down 100% in advance, right-o?
posted: Feb. 19, 2013 @ 7:49p
Thanks, I should definitely call PenFed.
Get postin moar dealzzzzz!
posted: Feb. 20, 2013 @ 11:49a
Oh God penfed working on an investment mortgage loan he he he he. Have fun down that road. I am a qualified buyer and when I got a second home it was hell with the, got done but I would be scared to think how it would go with a proposal like this. Report back if you try.
Senior Member - 1K
posted: Feb. 20, 2013 @ 1:16p
Agreed, I am working with PenFed on an HEL. Going on two months.... Stay away from them on anything that you need a time table for.
Senior Member - 3K
posted: Feb. 20, 2013 @ 5:06p
My standard response for any kind of weird, non-conforming loan. How about about trying a local bank that you have a relationship with?
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