In every city there are so-called commercial streets. The buildings on those streets might be one- story with various businesses, like on Irwing and Judah streets in San Francisco. On some street, though, buildings might have two or more stories. The street level part is for commercial use while the above is residential. These buildings are called mixed-use or MUBs.
There are many mixed-use buildings on Taraval, Geary and Clement streets. And some are in other parts of San Francisco. Many are located in Oakland. In the past, the only way to finance them was through the commercial banks. Loans were from five to ten years and had balloon, i.e. the need to be refinanced, which could be challenging for a variety of reasons.
However, now we have other solutions. Instead of analyzing the loan based on the tax returns, which might show losses, we are working with the lender who is just using income from both commercial and the residential parts. The loan is amortized for 30 years, but also can be interest only, which can help to get loan approval.
We have learned about this program during our recent meeting with Tammy Blanchard who works at Brokers First Funding. A video piece of our recorded conversation is available at this link.
For more information, please feel free to call me at (415) 225-7920 or send me an email at mannykagan@comcast.net.
I promise to help!
Manny Kagan,
President,
Pacific Bay Financial Corporation
NMLS #205637
DRE #00824602