Apartment Multi-Family Loans and Financing

When seeking Apartment or Multi-Family loans and financing you need know what is available in the financial marketplace that will fit your current fiscal needs.

Here is a list of current loan types that may fit your property and or situation. These run the gamut of possible lending sources, but is not all-inclusive.

Capital Market Lenders

The capital and secondary markets play an important role in providing both debt and equity to the multifamily housing community. These lenders provide financing at the lowest fixed rates and costs.

These providers of capital include CMBS (Commercial Mortgage Backed Securities),Conduit Programs, REIT, Life Insurance Companies, Hedge Funds, Pensions and other Institutional Investors.

They are looking for the best properties to give them a consistent return on their investment. Loan sizes start at $5 million and up. These are usually long term fixed-rate notes at the best prevailing rates when you lock.

Freddie Mac Multi-Family Small Balance Loan Program

Freddie Mac can provide financing on a smaller scale starting at $1 million up to $7.5 million. This program was designed to compete against local banks. It provides up to 80% LTV. It is assumable. It is a hybrid so it is fixed for 5 to 10 tears and then becomes an ARM.

Bank Balance Sheet Apartment Loans

These loans are provided by various commercial banks through out the country. Most banks have a sweet spot that they seek to find. They like certain areas of the country and certain demographics. Some of these lenders also are willing to work with experienced owners who don’t fit inside the box of the capital market or conduit lenders.

They will accept mixed-use properties (up to 25% commercial), even mobile home parks.

Fannie Mae Multi-Family Loans

Fannie Mae usually has the best rates in this segment and they are looking for loans in the $750,000 to $5 million range with LTV’s up to 80% on both purchases and refinances. These are usually non-recourse and assumable.

HUD FHA Apartment Building and Multi-Family Loans

HUD FHA apartment loans are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms. Financing is also available for healthcare properties through FHA.

This program has no population or geographic restrictions, they provide competitive rates and this financing can be used for construction or permanent financing.

Can be leveraged up to 87% LTV with fixed rate terms up to 35 to 40 years on a non-recourse and assumable basis.

Stated Income Multi-Family and Apartment Loans

Stated income loans are available that do not require personal or business tax returns. Usually personal financial statements and 3 years of the property’s operating statements are needed to verify the properties ability to service the loan.

Hard Money Apartment Loans

Hard money loans are used for short term financing. Be it to purchase and renovate a property or it could be used on a short term basis to purchase the property while long term financing is put into place.

These are just some of the loan types available for apartment and multi-family loans for financing.

You can contact us for additional information regarding your financial situation.

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