I am very excited to let you know that refinancing your TIC building into a new group loan at today’s fantastic rates is finally a possibility again. Here are some of the highlights of the program:
Realistic Loan to Value ratios: finance 80% of your building’s value. Have a loan of $800,000? Your building must appraise for just $1M to qualify. 4 unit with a loan of $1,200,000? Appraisal would need to come in at $1.5M. Up until now, our only investor allowing TIC group loans would only go to 65% LTV–not much help for buildings whose value has stayed at a standstill or dipped over the last few years.
Maximum Loan Amounts.
2 units: $800,775 (fast track but still want to refi? choose a 5/1 ARM with rates around 4%.)
3 units: $967,950
4 units: $1,202,925
OK to use during sale of one or more units! As long as at least one current owner stays on title, transfers of partial interests are allowed.
Qualify as a group, not individuals. Good news if you may have one weak borrower but overall, have enough income in your group cumulatively to qualify.
TIC agreement is not part of documentation required for this loan. Your TIC agreement and debt obligation agreement remain private, although full asset/income documentation is required.
Owner occupied and non-owner occupied are OK.If there are any non-owner occupied units in the building, there is an additional fee. This can be assigned to the NOO borrower during close of escrow so owner occupied units do not incur any additional cost during refinance.
ARM loans and 30 year fixed loans are available. Have you been in the lottery for several years already? Perhaps a 5 or 7 year fixed rate will carry you through conversion. Why pay for a 30 year rate when you can save by fixing your rate only for the time you need? 5/1 ARM rates close to 4%, 30 year fixed rates still under 5% for most borrowers/buildings.
What if you are already in the process of condo converting? Congratulations! You may not need a refinance, but soon enough, you’ll need to refinance your current group or fractional loans into condo loans. I can provide you with hands-on service from lottery win through final recordation of your condo and into your new, individual condo loan.
Why choose me for the refinance of your TIC property? I have purchased, refinanced, converted and sold TICs and understand the entire process from the owner, Realtor, and financing perspective.
But what will my rate be and how much will this cost? Each building and borrower is unique—contact me to request a custom refi scenario for your building. I will do a free analysis to help you see how much money per month a refinance will save you and your TIC group.
Equal Housing Lender. |