[Hannah H]

How do you get a $1.5 million mortgage for a large bed and breakfast. Is it determined by what salary you make, and if so, what is the said salary? And if its for a said bed and breakfast, will the bank take the amount of money generated from business into account?

[L. E. Gant]

Yes, the mortgagee (the lender) will take into account the revenue generated. Haven't looked at B&B places for a while, but previous info suggests that they'll calculate the income based on 80 to 90% occupancy rates. the 80% occupancy rate will need to be quite pricey.A B&B is considered to be a commercial venture, so they are not likely to lend you the full value of the property - most banks stick to around 60% of the commercial property value, regardless of the revenue generated. So, if the property is selling for around 1.5 million, they are not likely to lend you more than $900K. For the bank to consider that, you'll need a business income (the 80% from above) to be around $125K to $150K per year at today's interest rates. For a 1.5megabuck mortgage (if they gave it) it would need to be over $250,000 a year. (your regular income would help, if it's higher than that).Please note: I don't work for a bank, so this is only an opinion based on what I've seen with my own clients.