Multiple House Deals
How difficult/easy is it to do a mortgage deal to purchase more than one seperate houses in one purchase?
In my case I'm looking at possibly buying 2 duplexes from the same LLC. They're asking prices have about a $60k profit from their purchase prices for the 2 properties so I'm thinking if I can make an offer for both of them I can negotiate a better price than if I was just making an offer on one.
My top choice asking price is $86k and the second choice is $75k. I've noticed using www.amerisave.com that if I add the 2 loans together and use that amount the monthly payments and closing costs are much better than each smaller loan seperate. I believe this to be that most lenders want >$100k for loans.
Would most lenders be ok with rolling 2 duplexes into 1 loan? One looks to cash flow $400+ and the other $300+
Thanks in advance
Bob
In the jargon, you are looking for a blanket mortgage. Should not be too difficult to find a lender willing to do a blanket mortgage, but since each property is pledged as security for the same loan you need to understand what the lender will require when you decide to sell just one of the properties. How much of your sale proceeds will be required to pay down your mortgage loan?
Talk to a mortgage lender. Ask what the loan processing fees will be if you apply for two mortgage loans at the same time. Will you get a break on the fees -- only have to run credit once, employment verification once, income verification once, go through underwriting once if both properties are done at the same time -- perhaps a discount on the loan points if any? For the second loan, ask for the repeat customer discount (I believe CountryWide give a $100 credit at settlement for your second loan).
You may find that the difference in settlement costs is not really that great.