I owe 90000 on a home that I plan to rent out. Can I apply for a Business loan to pay off and purchase proper
I want to pay the home with the Business Loan. I also want to take some of the business loan to use toward purchasing another property to reside in and run an in home day care OR should I sell my property. The property is worth 200000. Could I use a business loan to pay for down payments and closings?
- 1 decade agoFavorite Answer
Well i realy suggest you get some financial addvice. Well you dont need to pay your home off in facted you should refinance pull cash out for your new home. Then rent your home for what ever the monthly payment is on your mortgage its alot lower interest rate then a business lone and it takes care of the monthly payments on your mortgage. Then you could use that cash out to put toward your business. If your one of those people who or trying to aviod fee's your going about it the wrong way. You will be paying in the long run believe me.Source(s): me contact me at email@example.com for any other questions.
- 1 decade ago
Can you apply? Yes. Is it intelligent? No. The rates for business loans are higher than residential, and they are generally on a prime plus basis, rather than a fixed rate. It's much better to purchase it as a primary residence or even an investment property than as a business property.Source(s): Loan Officer and Realtor in San Diego. Website http://www.danmelson.com
- missyLv 41 decade ago
A business loan would be a bad idea. The interest rate would be sky high. You would make a better profit if you stay with the mortgage and pay it off with the leasee's payments.
- Blunt HonestyLv 71 decade ago
Probably not. The bank would want to do a mortgage loan for investment properties. They make more money that way.
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- kingstubbornLv 61 decade ago
Using a business loan in that way sounds like fraud. The money is for the business, not residence.
- notyoursLv 51 decade ago
unless that house is a business they aren't going to let you pay it off with a business loan
- Anonymous1 decade ago
The rates are higher for business loans.
- AngiesHusbandLv 51 decade ago
Depending on how your first mortgage is written, you may be REQUIRED to refinance. Most residential mortgages have a clause requiring that you actually live in the house. Check yours to make sure.
- Anonymous1 decade ago
Try from the links in