Anyone know any Portfolio Lenders who will give a residential mortgage on a mixed used property in California?

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I can’t afford the 35% down for a hard money loan, but I heard that some Portfolio Lenders (lenders who make loans for their own portfolios and not to sell in the second market) will make owned occupied residential mortgages on mixed use properties. Though I’m having a hard time finding one. Any help is greatly apprieciated.
I think the property is already to small to subdivide anymore.

I’ll called a few dozen brokers in the area, most try to sell me a hard money loan (I think that’s because they get a big commission on those), but noone has hooked me up with a portfolio lender yet. I know they’re out there or at least they used to be.
Property is contains a house, warehouse, and store front.

  1. Reply
    May 1, 2011 at 9:11 am

    why not get the seller’s permission to divide the property for now
    into res on one lot and commercial on the other; that will get
    your rations down immediately.

    otherwise, how many mortgage brokers have you called?
    some via Google searches CLAIM to make these loans but
    when I challenge many of them, –or their mortgage brokers,
    they demand front fees. Paying a penny up front proves
    that the lender is bogus.

  2. Reply
    Real Estate pro
    May 1, 2011 at 9:22 am

    Typically a mixed use property is one building and lot with stores on the bottom floor and residential on the top floors or front and back, they can not be easily divided if at all.

    You can not buy definition get a residential mortgage on a mixed use property, you can only get a “loan”. Most banks hate these kind of properties unless you are borrowing well over a Million dollars. Your best bet is to get the seller to carry back or do a wrap around mortgage with the sellers present loan.

    One option might be an SBA loan (small business administration) but you would have to be wanting to move your business onto the property and be able to show your making enough money to pay the loan with the business. You would only need 10-15% down if this were the case.

    There really isn’t any difference between ‘Portfolio Lenders” and a “Hard Money” loan. Though I would think Portfolio Lenders would only be interested in making loans in the Millions of dollars; same amount work whether it’s a $ 500,000 or $ 5 million dollar loan.

    You can try standard commercial real estate leaders since Mixed Use properties are concidered commercial properties by most lenders.

  3. Reply
    May 1, 2011 at 9:54 am

    Building a relationship with a portfolio lender is the best thing a RE investor can do to build his/her business.

    Do some research, you probably pass a bank every day that is a portfolio lender. FYI: that bank will not be BofA or Citi but will be a 6 +/- branch concern that knows your local market.

  4. Reply
    May 1, 2011 at 10:01 am

    This might be a tough one. I would start by applying with an online source to find multiple lenders from one inquiry, this will save you time. I would try

    If you have a business and are going to occupy over 51% of the property you may be able to qualify for SBA and can get a 10% down purchase loan. You can also apply at one source to get connected with lenders who may be able to help you. Try:

    I hope this helps, good luck!

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