Appraised Or Purchase Price
Could someone tell me, are the loans that lent based on appraised value completely out of the picture now? Every lender I have been talking to lately will loan on the purchase price, not on the appraised price. I am doing a commercial deal (less than a million) and havent been able to find anyone willing to loan on a rehab for the current appraised value. Should I be asking for a particular type of loan? Or is this type of loan no longer available? Any help would be greatly appreciated.
Kyle
[addsig]
I would like to respond to your post but I don’t know enough about the deal and I don’t have the time to write a short novel in order to advise you. I will say that typically, all loans (commercial and residential) are based on purchase price. Also if you’re trying to refinance a property within 12 months of the purchase date the underwriter will typically use the purchase price as the value of the property not the appraised value. If you want a rehab or construction loan that uses the future value as the appraised value that’s different. Also there is a big difference between qualifying for a residential loan then there is for a commercial loan. If you want to run your deal by me, give me a call.
I disagree wholeheartedly with MrSubPrime. This is because I am closing a deal in two weeks with 107% financing on the purchase price, but 80% LTV off the appraised value. (value is around 1.3 Million)
Keep looking. If there's 20% equity in the deal and you can prove it, then you should be able to get it funded.
I agree that 95% of lenders go off of purchase price. Those 5% won't come and hunt you down and beg you to borrow from them. You'll have to find them. Good luck.
I know of only one lender who will lend off the appraised value and that's only for building investment homes...
[addsig]
This is a multi Family or commercial loan. I am doing rehab work so it may qualify for that as well. I beleive that 107% is only available for single family homes, although I could be wrong. The main question though is if there are those types of loans available for Multifamily or commercial type properties. And if so are they only available if it is a rehab or construction loan?
Thanks all,
Kyle
Hibby,
Would you be able to refer me to the person that was able to do that for you? I have several deals being held up by financing right now.
Thanks
Kyle