Right now I have a business loan through SBA and USDA, a 6-year loan at $50,000 that we've paid down to $25,000 in less than 2 years. It has a very high interest rate (10%) so we've been re-investing business profits into paying it off early, since there is NO pre-payment penalty with this specific loan. We know we can't re-finance this loan (or take out a lower interest loan to pay this one off - or is that the same thing?) until we've been in business for at least 2 years, which will be August. In the meantime, I'm looking to buy a house. Would that negatively affect my debt-to-income ratio for a future business loan?
Not only are we looking at re-financing this loan, we also have our eye on buying out a promising local business that is not doing well due to poor management, no advertising, and an owner whose heart just doesn't seem to be in it, and we would need to take out a loan for that. Is this going to be too many loans??? Do I have to forget about getting a mortgage, in order to buy this future business? We expect it to go up for sale within a couple years and we want to be prepared and be able to secure funding at any time. I would really hate to see another buyer swoop in on it (we are really waiting like vultures, here).
But I really need a place to live in the meantime, and sadly it's cheaper to pay a mortgage here than it is to rent.
What would you do???
