I own abuilding in NJ.with 3 rental spaces,no morgage,its residential commercial how can I get a loan on it?

If all the spaces could be rented as residential, then you get a residential loan.

If it's a mix, you might be stuck with a commercial loan.

To start, you need to calculate your income from the property and your basic expenses. The difference between the two is your net operating income. The amount left to pay a mortgage...

Commercial usually requires gross income to exceed mortgage payment by 1.5x. Residential is more flexible. The better shape the property is in, the more it will appraise for. Best residential rates will be at 70% loan to value or less.

Contact the loan department where you have your banking relationship (theoretically a stronger relationship) as a start and ask them what they can do for you.

You can also email me and I can put you in touch with a couple of knowledgeable loan consultants who are great at answering questions without requiring your first born child.

I am having a little problem with your question, you have a building with 3 rental spaces. What type of rental spaces, are you speaking of 3 apartment units? Then it is residential commercial.

I don't know if you should seek out a commercial lender or an appartment lender or a mixed use lender.

Your best bet is to contact a mortgage broker with the following documents

#1 Lease or rental agreements from the renters in your building.

#2 Two years of federal income taxes with the W-2's

#3 Six months of bank statement from each bank you are currently using. Also six months statements from your 401k program

#4 One month of paystubs

There will be additional information needed but this will get you started.

The mortgage broker will complete a mortgage loan application on you as well as run a credit check on you.

Your credit check will give him your credit score which will determine your interest rate as well as any mortgage loan programs you are qualified for.

Once you and the mortgage broker has determined the type of mortgage program and interest rate, you are qualifed for he will then lock the interest rate for you and order loan docs for you to sign.

I hope this has been of some use to you, good luck.

"FIGHT ON"

It has to be one or the other, unless it is mixed use, which means residential apartments and a store front. If it is three stores than it is just commercial, three residential units than it is only residential. You can get financing, the difference will be an investment loan, or if you reside in one of the units owner occupied. It is all equity, so you only need to go to a lender, and have your credit checked, as long as credit is good they will deem which type of loan you need for the property, and what the rate and terms will be. If it is strictly investment and you do not live there, than you will need to prove rental on all three units, and verify that the income on the building plus your own income can support the payments. The fact that it is all equity is also a very big compensating factor depending on how much you are trying to finance.