Mortgage Requirements On Condo Construction
I am looking into a project in my downtown that will require a commercial loan, which I have never done. I have about six residential NOO loans under my belt, so I feel comfortable in that arena. I will be building a three story residentail condo building, with five condos. One of the condos will become my primary residence and I will sell the other 4 pre-construction. I currently own the land that it will be built on and it and I have a 215k mortgage on it. The estimated costs to build will is 1.8 million.
1. How will the bank structure this note?
2. What is going to be required to put down, 10 or 20 %?
3. When will I put the money down (when construction starts or when construction is complete)?
4. I am assuming that the loan will be like a residential construction-perm loan?
I have a meeting with the bank next week but I would like to present myself as it I knew what I were doing.
Thanks
Comments(0)