WA State lender won't loan me more than $801,000 due to LTV

[Carlos Enriquez]

Jumping right in, I was told today that I would have to cough up $349,000 DN for a $1,000,000+  4 plex.  25% would have been $287,500, which would have been easy.

So now I'm considering breaking my IRA, cleaning out my savings, and selling off a few things in order to satisfy that.

Anyone know of another way to get the additional $61,500 short of making a lower offer?

The broker was talking out loud about a 2nd mortgage, but said it wasn't ideal.  Has anyone come across this before?

Thanks.

[Albert Bui]

Originally posted by @Carlos Enriquez:

Jumping right in, I was told today that I would have to cough up $349,000 DN for a $1,000,000+  4 plex.  25% would have been $287,500, which would have been easy.

So now I'm considering breaking my IRA, cleaning out my savings, and selling off a few things in order to satisfy that.

Anyone know of another way to get the additional $61,500 short of making a lower offer?

The broker was talking out loud about a 2nd mortgage, but said it wasn't ideal.  Has anyone come across this before?

Thanks.

 HI Carlos its because conforming limit for 4 units is 801,950 on a fourplex up to a max of 75% loan to value.

By stating 287,500 is 25% means your purchase price (you did not mention) would be 1,150,000.

The reason you got countered with more "down payment," is because you've now ventured into "high balance limits." HB limits have stricter down payment requirements of 35% down or more to purchase a non owner 4 plex.

I am not sure if your loan officer explained to you correctly but the reason you need that 61,500 extra is because 25% of 1,150,000 is  862,500 and since the max loan amount for a fourplex like mentioned above is 801,950. The difference between this and 862,500 is about 60,550.

Otherwise the lender would have to adhere to high balance guidelines which is 35% down and trust me you dont want that anyway.

There are no 2nd's I know of on a four unit non owner fourplex.

Based on the price I assume this to be seattle/king county proper? =D