Avatar's Blog
» Residential or Commerical - What Kind of Loan Is I
Posted on 2/17/2006
I am often asked by brokers and borrowers alike, "Do you do residential loans?" The answer is yes... and no. What stumps most folks is the difference between an owner occupied residential mortgage and an investment residential loan. Here are some tips about what Avatar can fund and what Avatar will not fund:
Owner occupied residential properties. If the property is in the states of Washington or California, and the value of the property in its current condition today is at least $770,000, Avatar can fund up to 65% of that value, or $500,000. Naturally, if the property is worth more, 65% LTV will potentially generate a larger loan. If the owner occupied residential property is located other states (Avatar only funds in the US), then the property must qualify as a commercial property - in other words it must be held in a Trust, LLC, or similar corporate entity and the cash out funds from a refinance must be used for business purposes. Commercial lenders do not fund owner occupied residential properties if they are held in the owner's name alone.
If the loan is for a purchase of owner occupied residential property and the property will be purchased in a Trust, LLC, etc. then it may qualify for a loan from Avatar. The purchase price (not the appraised value) must be a minimum of $770,000 to generate the minimum loan of $500,000.
If the residential property is to be used for business purposes - ie: it is an investment property for resale, rental, business occupation, etc. then the property may also qualify for a commercial loan, even if it is held in the owner's name, not a corporate entity.
To clarify whether your residential property meets the criteria to be funded with a commercial loan, contact Avatar at 888-886-0097.
Posted in Avatar's Loan Criteria
Owner occupied residential properties. If the property is in the states of Washington or California, and the value of the property in its current condition today is at least $770,000, Avatar can fund up to 65% of that value, or $500,000. Naturally, if the property is worth more, 65% LTV will potentially generate a larger loan. If the owner occupied residential property is located other states (Avatar only funds in the US), then the property must qualify as a commercial property - in other words it must be held in a Trust, LLC, or similar corporate entity and the cash out funds from a refinance must be used for business purposes. Commercial lenders do not fund owner occupied residential properties if they are held in the owner's name alone.
If the loan is for a purchase of owner occupied residential property and the property will be purchased in a Trust, LLC, etc. then it may qualify for a loan from Avatar. The purchase price (not the appraised value) must be a minimum of $770,000 to generate the minimum loan of $500,000.
If the residential property is to be used for business purposes - ie: it is an investment property for resale, rental, business occupation, etc. then the property may also qualify for a commercial loan, even if it is held in the owner's name, not a corporate entity.
To clarify whether your residential property meets the criteria to be funded with a commercial loan, contact Avatar at 888-886-0097.
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