While trying to secure the building on 12th and St. John, we inquired about getting a mortgage for the daycare. Here are some interesting tidbits we found out:
- A daycare has to have 2 years worth of operating financials. So unless we had a home and operated for 2 years, we could not secure a mortgage. Which came first? The daycare or the mortgage.
- You need to have 25%-30% down to secure a mortgage. Daycares are considered “commercial” properties despite being non-profit (and, in our case, a charity).
- Private lenders (at least those we spoke to) have issues funding a daycare.
- Corporate sponsorship is not available for a capital purchase (under the Community Sponsorships).
And you thought getting a personal mortgage for your house was hard?