Marques Capital Online | Multi-Family and Mixed Use
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Multi-Family and Mixed Use

MULTI-FAMILY AND MIXED USE

A successful company operates on core beliefs. At our core, Marques Commercial Capital believes that property owners and investors are underserved by narrow and inflexible banking guidelines and we’re here to change that. We see loans in full color. We understand that every loan has a unique story and we’re ready to listen to the needs and issues of every borrower.

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
Mixed use

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

PROGRAM GUIDELINES

Property Types Multifamily, Mixed Use, Office, Retail, Light Industrial, Mobile Home Parks, Self Storage, SFR Pools
Lending Area Nationwide (except Alaska, North Dakota and South Dakota)
Loan Amounts $75,000 – $5,000,000
Loan Term 3, 5, 7, 8, 10 years fixed
Amortization 30 Years
Minimum DSCR 1.20
Maximum LTV Up to 80% / CLTV up to 90%
Fixed Rates 6.00% – 9.90%, then float
Better Credit Score Rate Discount Available
Better Market Area Rate Discount Available
Index 6 month LIBOR/ WSJ PRIME (after fixed period)
Margin 4.00% (after fixed period)
Rate Caps 1.00% initial, 1.00% per 6 months, 6.00% lifetime
Floor Initial Rate
Occupancy Investor and Owner-Occupied (O/O not for 1-4 SFR Pools)
Minimum Credit Score Generally 620
Personal Recourse Required for 25% or greater ownership
Loan Cost 4-5% of loan amount (total closing costs)
Rate Buydown Available