Getting a mortgage on properties purchased on a personal loan?

[Anthony Richards]

My friend owns about 7 properties in Rochester, NY that he purchased through a variety of personal loans.

To my understanding, he can’t refinance his properties (or can he?) because he doesn’t have a conventional loan on any of them.

What ways would he be able to get a mortgage out on all his properties to bring down his interest rate and wrapping it all into one loan?

FYI: He owes under $100,000 for all 7 properties combined.

Looking forward to hearing from you guys!

[Marc Winter]

A refinance has nothing to do with the personal loans on the properties, so long as the personal loans are not in the form of a mortgage, and they don't affect your debt to income ratio.  Oops, I meant your 'friend'.  

Refinance through a bank, s&l or credit union and they will check the title, do appraisal(s), check your "friend's" credit, income etc.  The costs, term, and interest will depend on the lender and your 'friend's" qualifications, and that the property appraises for the amount applied for.

Your final question is concerning a 'blanket' mortgage.  That is one loan covering several properties.  Check with your attorney and/or mortgage consultant to understand fully the benefits and shortfalls of a blanket mortgage.  Can it be done?  Yes, of course.  Should your "friend" do it?  Best check it out in detail with qualified professionals.