What Loan Product for a 4 Plex?

[Julie Marquez]

I am looking to refinancing my 4 plex building in Skagit County. I've found two different options from banks.

The large neighborhood/state credit union:

Good rates 4.25% for a 30 year fixed mortgage

65% LTV

They control an escrow account for taxes and insurance

I have to get the building out of the LLC for the refinance

Could take 30-60 days to close, I'm guessing on longer because they probably don't like all my rental income and financial oddities

Can simultaneously do a loan for my next primary home purchase

The Ultra Local Business Bank:

They offer 3 or 5 ARMs only, amortized over 25 years with a 10 year balloon

Rates at around 5.5%

75% LTV and like that I can get more out than the other bank

They loan to LLCs, don't need to change anything with that

They don't hold an  escrow account

Portfolio lender and keep locally within their 3 or 4 branches

3-4 weeks to close and they totally understand my rental income and financial situation

Don't do primary home loans, I want to use a portion of the proceeds for a primary home downpayment

It's a 4 plex so I have the option for a traditional conventional loan, but also a business commercial type loan that is made for investment properties. What is the best route to go for refinancing a 4 plex?

[Harjeet Bhatti]

@Julie Marquez Go with conventional loan if you are planning to hold the property for longer term otherwise commercial loan is good option.