Do you think I would be able to get a grant and use the money as downpayment on a mortgage to build an apartment building?
The banks here in my country give mortgages of you have at least10% downpayment and a stable job. The government is planning to give grants to young people looking to start small businesses soon but there's a maximum amount they'll give. I have a dream of doing real estate and I was thinking I could get a grant to cover the 10% downpayment needed for the mortgage. What do you guys think?
- curtisports2Lv 72 months agoFavorite Answer
Great. They give you the 10% down payment in the form of the grant. How do you prove to a lender that you can pay the other 90%? You have to prove that. Lenders don't loan money for things like this on a promise, like some small personal loans. What source of money will you use to pay the mortgage while the property is being built, which will take far longer than the 4-6 months it takes to build most single houses? Potential income from the rental business will not count until there IS any.
Also, most lenders will not finance the cost of the land your building will go on. If you bought an existing building, the value of the land would be included in the purchase price.
You are not ready to buy/build until you learn a lot more about what goes into it.
- STEVEN FLv 72 months ago
NO. An apartment building IS NOT a small business, at least not as defined by the grant program.
- SlumlordLv 72 months ago
I think its highly unlikely to get a grant for this, at least not without extensive experience. If you think it may happen then go ahead and poke around and see if its possible but don't get your hopes up.
- TavyLv 72 months ago
They are not going to put this money into your bank account to spend as you wish. This is open to fraud.
They will want business plans and an interview.
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- Anonymous2 months ago
How do you think all those projects for "Low Income" rental property get started.
The Government Funds the whole thing, The Government gets the money from Taxing the People OR a bonding issue (public mortgage).
Interesting story: In my state, a immigrant would build a three story rental property, One level for themselves, and two stories to rent. The "people in government" decided that was to be zoned out. [It denies simple income & home, to immigrants]
They are still unlawful in my states Zoning.
- Anonymous2 months ago
Worth a try. What have you got to lose? Worst scenario is they can say no.