Does anyone know of a broker that is able to finance a 5 family home.
Five family homes are considered commercial; my regular broker can't finance the place and I am having difficulty finding a broker that could do it.
Thank you in advance.

how big is the loan?

$1.1m.

Good morning tobytoby,

You don't indicate the location of the property. If it's in the Five Boroughs here's what I recommend:

Scott Barber at Ridgewood Savings Bank: (718) 240-4948

Ivan Nunez at Astoria Federal (sorry, I don't have contact info)

Dime Savings Bank of Williamsburgh: 718-782-6200

These Lenders are specialists in Commercial Financing in the New York Area.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

Thank you Trevor. Very helpful.

You are quite welcome. Good luck!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

Not sure if you're purchasing or refinancing.

Here are some fundamentals you should be aware of if you are purchasing:

1. Appraised value will be based on Net Income NOT Market value. Therefore you might find the Loan To Value is reduced by your Lender once the Appraiser sends in a report based on Net Income. In other words, the appraisal may come in short of the contract price. Be prepared to have more money towards down payment in case that happens.

2. Vacancy rates are calculated into the Net Income. The percentage for vacancies varies from Lender to Lender.

3. Lenders allow for a percentage of net income to "Service the Debt" similar to qualifying ratios on a residential mortgage. This Debt-Servicing-Ratio varies from one Lender to another.

4. You should get a complete finance package with Income and Expenses from the Seller prior to signing the contract of sale. If you don't have the ability to come up with additional down payment money if the Appraisal comes in less than the purchase price then you might get hung up in the deal.

5. Ask the Seller if any apartments are covered under Rent Control or Rent Stabilization Laws in New York City. If so, you'll need to provide the most recent DHCR filing to your Lender.

6. Your personal income will not be included in the qualifying calculations.

7. 5 Family properties often have commercial space on the ground floor. If this is the case with the property you are buying you must be careful of both the type of business located there and the lease terms.

8. Fixed rate loans are the very RARE exception to the rule. Most Lenders on Commercial loans will offer you an Adjustable Rate Loan usually amortizing out at 25 or 30 years. A typical loan is 5-5-5-5-5 years amortizing at 25 year term adjusting every 5 years. Prepayment penalties are the norm and the amount of penalty declines over the life of the loan.

Hope that helps!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

"Fixed rate loans are the very RARE exception to the rule."
Not true.

toby:
take a look at this web site & you'll probably find banks that do commercial mtgs: http://www.rew-online.com. If you're serious about commercial RE, subscribe & get the paper copy of Real Estate Weekly, which has ads & articles re: commercial mtgs.

I know Dime Savings Bank of Williamsburgh is making loans, try Apple Bank, as well. You don't need a broker to find a commercial mtg, just call/email the bank & speak to a loan officer. However, since you sound new to this, I recommend you get a really good commercial RE attorney. Do not sign any agreements/contracts with mtg brokers or banks until after your commercial RE attorney has approved & edited the agreements/contracts.

Also, check out the Stoler report: http://www.youtube.com/watch?v=S2kzHotv7KU&feature=youtu.be
Stoler is biased, but sometimes the info is useful

Good luck.

PS: when you're talking mtgs, here's some lingo: if the bld is 100% apts, it's called "muti family". If the bld also has a store or offices, it's called "mixed use".

"muti family" = "multi family"