Need advice on a commercial refi because of a divorce
Here's the deets, 

 I own a business (machine shop) that is incorporated, the shop is about 10k sqft,  is on 21 acres, and has a 1300ft apartment (new) I live in above it.  It will need a current appraisal done, but I think there is about 200-300k equity in it (owe around 200k, appraised in 2011 for 340k and have done lots of improvements since then plus market is crazy here). The mortgage is in our personal name, not the company and the company pays rent. Been in this building for around 15 years. 

The catch, my wife, that I am trying to get a divorce from, owns 50% of the business. As part of the divorce, I want to buy her out and be 100% owner. In order to do that I am going to have to get a refi so its all in my name only. 

My credit scores are over 800 and the business's P&amp;L and cash flow's are all really good. 

I dont want an ARM, hard no, especially right as rates are about to start climbing. So, what other options are out there?
[{"id": "i1zerq1", "text": "You should qualify for an SBA 504 loan. Definitely the way to go if you qualify, which it sounds like you will as an owner user. SBA loans only require +\\- 10% down.\n\nhttps://www.sba.gov/funding-programs/loans/504-loans", "replies": [{"id": "i1zf44c", "text": "Its my understanding that those can be a pain to get and drawn out? I think I am going to need it all to happen fairly quickly once the divorce starts.", "replies": [{"id": "i1zjdjz", "text": "Typically takes 90 days-ish and you will have to provide 3 years tax returns, business plan and 3 years forward looking projections.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i1zeu2a", "text": "If you know a mortgage broker give them a call, otherwise maybe start with the bank you do your business banking with.  There are favorable conventional loans for owner occupiers.  Probably looking at a rate in the 4's % that is fixed for 10 years, then you refi again.  Also try SBA but they don't like giving loans for properties the borrower lives at.  Maybe get a PO Box somewhere else and say you lease the apt to someone else.", "replies": [{"id": "i1zg3iu", "text": "The current Mortgage was done by our small local bank and I was friends with the loan officer/banker there. But they got bought out by Capstar and he retired because Capstar sucks ass. If he was still there I would have no issue getting this done, since he has been the only person I have gotten loans through for the last 25 years, I am kinda back at square one again.", "replies": [{"id": "i1zi895", "text": "First Citizens bank is good but they are not in every state.  Call a few banks and ask them for a quote for a refi for the property your biz is in. Maybe try a big bank and a smaller local bank.  Maybe try a credit union but the process will take longer.  Living there may cause a wrinkle so ask if your loan would change if you didn't live there.", "replies": [], "depth": 3}, {"id": "i20p768", "text": "Start a new relationship with a really local bank. You've got a need to borrow and a successful business to back it, they have a need to lend. Of course you'll move all your banking to them and away from Capstar. It sucks to start over but really you'll have to do all the same paperwork anyway. Not like the old bank was going to do a handshake deal. Stop posting on Reddit and start calling local banks.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i1zirze", "text": "Do you have to:\nA) buy your wife out of the business and real estate both\nB) just the business and you're looking to use the equity from the real estate to do so\nC) buy her out of the business and refi the real estate to your own name with no cash out\n\nDo you want to keep the RE in you're personal name?\n\nHave you considered sub dividing the apartment off so you can get a personal mortgage product on that and a commercial product on the shop?", "replies": [], "depth": 1}, {"id": "i1zjgda", "text": "You need to speak with a divorce attorney.  Most charge a nominal fee for the first consult ($200-300).  I have two friends who work in this field.  It's worth the few hundred to fully understand the laws in your state.", "replies": [{"id": "i20epek", "text": "I have one and he finally got me papers last Friday and he has it written up where if she accepts the deal, then I have a certain amount of time to refinance the loan and have all corporate paper work done in order to take control of her ownership.  So I am now trying to get a plan before I send the papers to her.", "replies": [{"id": "i20p8dr", "text": "That doc will put you in a pickle, and her in ownership of your business and real estate (which neither of you wants).", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i1zlozf", "text": "Who owns the business? 100% you? If so, You most likely need to buy the property as the business from you and your wife. It's not a refi cause you'll go from the business that you own 100% of buying a property you own 50% of.  Negotiate the price with her first. If she's smart she'll require an appraisal but just start low. Like $100k over the $340k. When you close at $440k she'll get the 50% of the $100k equity. But your bank will require an appraisal during closing so it has to be at or higher than the $440k. Most commercial loans will require at 75% loan to value so you'll only be able to cash out the 25%. If it appraises for $500k then you can get a loan at 75% of that so $375k. You probably wouldn't want to increase your monthly payments by that much anyway.  But then you buy the property at $400k from you and your your wife and your bank will lend you 75% of the $400k. That's $300k minus your $200k current mortgage and you and your wife would split the $100k.", "replies": [{"id": "i20e9hi", "text": "There's an important part I left out. We sold the house we had and it cleared about 200k. So my plan is to offer her my half of that, so 100k as the money to buy her out. If she will go for that, then it's just a refi, I wont need any extra. If she doesn't go for that, then I would probably have to go this route.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i1zq83l", "text": "\"*So, what other options are out there?\"*\n\nEasy peasy:  Give her 50K and ask her to carry the contract for 5 years.\n\nNext?", "replies": [{"id": "i20fd57", "text": "Sorry, don't understand what you mean. The 50k wouldn't be a problem,  but not sure what ya mean by ask her to carry the contract for 5 years.", "replies": [{"id": "i20oe6i", "text": "Pretty simple stuff.\n\nYou say there is 250K in equity.\n\nYou are looking to borrow enough money to pay off the ex.\n\nShe'll have to pay taxes on the proceeds if you cash her out.\n\nEvery year she holds off taking the cash upfront, there's a better than odds on chance that Republicans will be in power (likely lower capital gains taxes).\n\nYou'll pay 6 - 8% to borrow from a bank (for a second on commercial), and 2+ points to borrow, plus credit check and other fees. Check your local rates.  I'm being conservative.  Offer her a rate of 70% that of the bank and everyone wins.\n\nGive her 50K bowling money today, have her hold the note on the 200K remaining for 5 years at 4% (no points, no credit check, no fees), she wins because she'll make 3.8% *more* than in her savings account, she's got enough cash to start her life out with (maybe even buy a house), and a guarantee of $3,683.30 per month if you amortize over 5 years ($2,024.90 per month on a 10 year amortization, for 5 years with a cash out of $109,950.57 at 5 years and 1 day). You can extend the terms as long as she's willing.  Banks will offer longer terms than someone clearly wishing to be free.\n\nYou're looking for a 100% loan on all of your equity.  What bank is going to willingly carry a second at anything more than 70% LTV (more likely....50%)?\n\nI'll help:  It rhymes with \"*none*\".\n\nYour (soon to be) ex is your best, cheapest (and smartest) bet. And it will require the least upfront cash.  Plus, if in 3 years you have an extra 150K lying around, she may be willing to settle the debt for a 10 - 15% reduction in principle.  No bank will.\n\nIf you had to give her something additional to sweeten the pot, consider yourself lucky (trust me).\n\nThere's other components to this, it's not as black and white as posited above, but it's pretty much as described. These are worst case scenarios.  Some banks will offer better deals, better rates but, no matter what, your best rates and terms will come from making her the bank.\n\nYW\n\n*(Edit; I got the math wrong because I didn't divide the equity by 1/2 but...the gist is there.  It's late, and I'm too lazy to fix it...divide the numbers essentially by half).*", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i200kw3", "text": "It might be cheaper to keep her", "replies": [{"id": "i20d2zf", "text": "The best things usually aren't cheap.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i20dsu9", "text": "A mortgage broker would be able to help u", "replies": [], "depth": 1}, {"id": "i20vwci", "text": "She owns 50% of the business? How much is the business worth?\n\nIf the property that the business (partially occupies) is owned by both of you, then you have two numbers to consider. \n\nYou owe her 50% of the business valuation AND 50% of the equity on the property. \n\nWork with a more local/state/regional commercial bank. You have a unique property, 21 acres is a shit ton and the structure is mixed use, which may alter the underwriter criteria/LTV maximum.\n\nEdit: some spelling", "replies": [], "depth": 1}, {"id": "i212f8f", "text": "Commercial lender here. I think a lot of people commenting here don\u2019t really know what they\u2019re talking about. They seem to think the bank is going to try to screw you or won\u2019t touch it because of the divorce. Obviously any sort of legal matter is not Ideal but I\u2019ve done many loans like this. Owner occupied property, refi + cash out (not a second), and we call it a partner buy out. If you owe $200k and the property is worth $500k on the high end as you suggest, we\u2019d lend $400k on it (80% LTV) and you will have an easy time finding a fixed rate in the low to mid 4% range (not 6%-8%) as some others suggested, on a 15 or 20 year amortization. Even shorter if you wanted. With loan fees, appraisal, and title and escrow, you\u2019re looking at maybe $5k in fees. \n\nAssuming debt service is good, the big question any bank is going to have is what impact the departure of a 50% owner will have on the company. You have a good answer for that question, and you\u2019re problem is solved. \n\nIt\u2019s also worth noting that you may also be hit with a transfer tax since half the property ownership is transferring out of your wife\u2019s name. Not a property tax expert, but this question always seems to come up when I do deals where the property vesting is changing. I typically refer my client to the title company to answer those questions.\n\nWhat state are you located??", "replies": [], "depth": 1}, {"id": "i2133y1", "text": "What is the current debt/equity situation with 1) the property and 2) the business? Are they under 1 loan? Are you saying your wife is entitled to 50% of the business only (and not the property)?", "replies": [], "depth": 1}]