Multi-Family
Expanding your business offering to include financing for apartment buildings, also known as multi-family properties, is an excellent way to grow your client base.
Multi-Family
Offering financing for apartment buildings, otherwise known as multi-family properties, is an excellent strategy for brokers to expand their business offering and client base.
We offer flexible financing options for apartment buildings.
Multi-Family
Offering financing for apartment buildings, otherwise known as multi-family properties, is an excellent strategy for brokers to expand their business offering and client base.
To qualify as a multi-family investment property, the building must have five or more dwellings (apartments), whereas buildings with four or less units are still classified as residential 1-4 investment properties in most states.
To real estate investors, a multi-family apartment building is a solid real estate investment strategy for generating revenue since its cash flow is significantly higher than a single-family property and its operating cost is less influenced by any single vacancy.
While a larger multi-family property lowers the risk for investors, it’s important for brokers to communicate that lenders typically assign a higher risk profile to apartment building loans since the properties are harder to liquidate than smaller residential investment properties.
Lenders often use a lower LTV in financing an apartment building to offset the increased risk, so your borrower may need to provide a larger downpayment
If you have investors interested in financing for apartment buildings with five or more units, our asset-based mortgage programs can help you meet the needs of self-employed borrowers who often invest in multi-family buildings and write off their expenses against income. While this is a wise tax-saving strategy for real estate investors, it reduces the borrower’s personal income and may make it difficult to qualify them for a traditional mortgage loan.
Asset-based investment property mortgage programs are an excellent alternative because they focus on the value of the property and its revenue-generating potential, thus eliminating the personal income reporting requirements of traditional loans.
Our long-term loan program is a great option for multi-family property investors since it offers:
• A simple financing solution on a purchase or cash-out refinance.
• A 1 to 30 year fixed term
• 30 year amortized with no balloon payment
Program Guidelines
Property Types: Multifamily, Mixed Use, Office, Retail, Light Industrial, Mobile Home Parks, Self Storage, SFR Pools
Lending Area: Nationwide
Loan Amounts: $100,000 – $5,000,000
Loan Term: Up to 30 years fixed (1 – 30 Years)
Amortization: 30 Years
Minimum DSCR is calculated on a case-by-case basis.
Maximum LTV: Up to 75% / CLTV up to 90%
Occupancy: Investor and Owner – User for Commercial
No Minimum Credit Score Required
Rate Buydown: Available
Get The Information You Need
To learn more, call (888) 543-4410 , or complete the contact request form below and one of our investment and small commercial property specialists will reach out to you.
Brokers / Partners
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Borrowers
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