mortgage questions

[quantum]

I am a new member of this forum but have been reading for quite awhile and realize there are many people with a wealth of experience and knowledge

I am quite new to the real estate investment scene and have a few questions about mortgages


I am planning on buying some residential lots and having an outside builder construct new homes and then sell complete

If I do this through a limited company for tax purposes, can I obtain a builders mortgage for this property? Can a company be on a builders mortgage? This is a new business so I would be using my personal credit history

Any comments or suggestions will be appreciated

Thanks in advance

 

[PeterKinchMortgageTeam]

QUOTE (quantum @ Feb 1 2008, 02:01 PM) I am a new member of this forum but have been reading for quite awhile and realize there are many people with a wealth of experience and knowledge

I am quite new to the real estate investment scene and have a few questions about mortgages


I am planning on buying some residential lots and having an outside builder construct new homes and then sell complete

If I do this through a limited company for tax purposes, can I obtain a builders mortgage for this property? Can a company be on a builders mortgage? This is a new business so I would be using my personal credit history

Any comments or suggestions will be appreciated

Thanks in advance


Its really tough to give financing advise without more information - as a great deal depends on the applicant themselves but we can certainly give it a shot. Alot of it is going to depend on where you are planning on building and the size of the project - if its in Alberta and its one or 2 homes at a time, you`re probably going to have trouble getting a construction mortgage from a major FI - they tend to only be offered when you are building your primary residence. You would probably be looking at private lenders for this kind of loan. If its in BC, you`ll have more options as some of the local credit unions do offer them on rental properties.

If you`re planning on doing a larger project, you might want to look into some commerical financing options as well.