I own a 40’ X 60’ X 15’ concrete building for personal use, to storage my RV. I would like to know what personal loan programs, including terms and rates, are available if I use this property as collateral? Would the terms and rates be similar if (I were to use my personal residence as collateral? (Equity loan).
I want this loan to be an equity loan, not a commercial loan.
PLEASE I NEED ANSWERS FROM LOAN OFFICERS ONLY.
THANK YOU VERY MUCH
I already talk to some officers, but I want more opinions from other banks
Is the building on that same parcel as your personal residence?
If not, that loan would not have the same terms as a Owner Occupied Home Equity Loan.
If that concrete building is on the same land parcel that is part of your primary personal residence, simply have your lender do an appraisal to include the additional value of that concrete building , along with your house to find out any additional equity available to you.
If the building is on an adjacent lot, you may be able to combine the parcel of your primary residence with the adjoining parcel with the storage building to get Owner Occupied treatment .
Keep in mind that this would encumber your entire property including your house. They will not segregate the loan to only cover that building.
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November 28, 2008 at 09:15 pm
Why don't you ask BANK.
How much you pay me to give you professional advise?
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November 28, 2008 at 09:50 pm
Banks may not want to loan on it because it is not a residence. Also, different banks handle different loans. If I were you, I would call around and see what you can get.
Rates change and are based on your credit worthiness (score) so nobody here can tell you what rate you might get except for a range. It will be somewhere between 5% and 25%.
The rates will most likely be a little higher than a residence because you will be less worried to loose it. Also you will have to insure it, so figure in that cost. You will also need it appraised too and it may cause your taxes to go up.
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November 28, 2008 at 10:18 pm
Is the building on that same parcel as your personal residence?
If not, that loan would not have the same terms as a Owner Occupied Home Equity Loan.
If that concrete building is on the same land parcel that is part of your primary personal residence, simply have your lender do an appraisal to include the additional value of that concrete building , along with your house to find out any additional equity available to you.
If the building is on an adjacent lot, you may be able to combine the parcel of your primary residence with the adjoining parcel with the storage building to get Owner Occupied treatment .
Keep in mind that this would encumber your entire property including your house. They will not segregate the loan to only cover that building.
References :