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Personal Finances / Buying or Selling a Home


Subject:  Re: Consolidating Mortgages Date:  12/10/2012  4:31 PM
Author:  Dwdonhoff Number:  124460 of 128887

Hi borad,

Is there a lending vehicle I can use to consolidate it all into one nice loan?
Well, yes... but they are small business commercial loans, and the terms are nowhere near as preferrable as standalone residential loans available on 1-4 unit properties (assuming you are referring to 1-4 unit rentals.)

2gifts' warnings are very valid... but if that's not enough to put you off, the commercial terms to do what you are asking would be;
1) Technically an 80% LTV limits... however
2) 1.25% DSCR, maximum... which on 1-4 unit rental yields generally translates to a loan-to-value maximum of 50-60%
3) amortizations of 10, 15 or 20 years (nothing for 30,)
4) balloons at 3, 5, or 7 years (no fixed terms longer than these,)
5) SBA rates in the 3.9% range unless you are a white male, then 4.9% (who said racism isn't alive & well in banking!)

Although these *can* be done on residential or mixed portfolios... they really generally only make financial sense on commercial rental portfolios.

Dave Donhoff
Leverage Planner
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