Financing |
| Posted by: Julie May 27 2004, 12:08 PM |
| Currently I run a small home base Event Decor Business with two other partners. We are looking to purchase a small building so that we can add a balloon delivery service. My husband and I would like to purchase a new home. Question: We were pre-approved for a home loan, however, were thinking that if we were to purchase a smaller priced home maybe we could use a portion of the loan to finance my business. Is this possible? Question: If I decide to purchase a home with my husband, will the bank allow me to take out a business loan with my other two partners with a separate loan? |
| Posted by: loanuniverse May 27 2004, 08:09 PM |
| Julie: Let me see if I can give some feedback. ” My husband and I would like to purchase a new home.” When I read this I am thinking residential home loan, which is repaid with your combined personal income. You do not mention if your husband is currently employed. If he is then his income is accounted for. So far I do not see a problem, thousands of these are done every day. ” Currently I run a small home base Event Decor Business with two other partners. We are looking to purchase a small building so that we can add a balloon delivery service.” This on the other hand is the text book case of “owner occupied” commercial real estate. This loan will be repaid with the business cash flow. In order for the bank to do the underwriting, it will need financial information for the business. ” We were pre-approved for a home loan, however, were thinking that if we were to purchase a smaller priced home maybe we could use a portion of the loan to finance my business. Is this possible? ” No this is not possible. You have two separate transactions with two different borrowers and two different sources of repayment. You also have to take into consideration that the lender pre-approved you for a particular amount, but the actual loan will depend on the value of the home that you will purchase. Chances are the lender will not want to lend more than the house is worth. ” If I decide to purchase a home with my husband, will the bank allow me to take out a business loan with my other two partners with a separate loan? ” This should not be a problem. Of course, you need to qualify for the home loan as well as your business having to qualify for the commercial building loan. Good luck |
