Multifamily financing is a type of mortgage that can be used for the purchase or refinance of smaller multifamily properties (with 2-4 units), and large apartment buildings that have many units 5+. Multifamily loans are a good tool for both first time real estate investors and seasoned professionals for Refinance or purchase of apartment building or commercial property.
At APL you can Access higher leverage, lower rates, and longer amortizations than most banks or brokers dream of.
Multifamily mortgages can finance two types of properties. The first is a residential investment property with between 2 – 4 units. The second is an apartment building with 5+ units. This distinction between the types is important because the number of units dictates the types of multifamily financing options.
So many factors involved in choosing the loan that’s just right, these include things like terms (Balloon, interest only, amortization schedules, and much more), rates, fees, recourse, or non-recourse leverage, assumability, prepayment requirements and penalties, subordinate financing, lock-out periods, carve-outs, and more. Lot of lenders have their own suitable requirements with various standard structures; there are very limited bending which means that when dealing with a bank or a banker, or even your local mortgage broker, you may have to make your deal fit into their niche, instead of finding the lender that builds their business for opportunities just like yours which will be limiting your options to their strengths, instead of leveraging the strengths of your loan opportunity with the appropriate lender in your niche. What one lender may call a one-off deal, another may call a perfect fit.
|Hard Money Loan||Bridge Loan|
|Average Loan Amount||$200,000 – No Maximum (Maximum Loan-to-Value Ratio 90%, Maximum Loan-to-Cost Ratio 85%)||$200,000 – No Maximum (Maximum Loan-to-Value Ratio 90%, Maximum Loan-to-Cost Ratio 85%)|
|Average Down Payment||10%+ of Loan-to-Value (LTV) Ratio, 15%+ of Loan-to-Cost (LTC) Ratio||10%+ of Loan-to-Value (LTV) Ratio, 15%+ of Loan-to-Cost (LTC) Ratio|
|Average Interest Rates||5.65% – 9%||4% – 7.25%|
|Average Lender Fees||1% – 2% Loan Origination Fees,(Refundable One-time fee to cover the cost of servicing and processing the loan) 0% Exit Fee, 0% Extension Fee, 0% Prepayment Penalty||1% – 2% Loan Origination Fees (Refundable One-time fee to cover the cost of servicing and processing the loan) 0% Exit Fee, 0% Extension Fee, 0% Prepayment Penalty|
|Average Loan Term||6 Months – 180 Months||6 Months – 180 Months|
|Average Time to Approval & Funding||10 – 15 Days||15 – 25 Days|
|Average Qualifications||2 – 5+ Unit Building, 550+ Minimum Credit Score Companies in business at least one year(for LLC)
$100,000+ in gross annual revenue
At least one owner with a 550+ personal credit score
|2- 5+ Unit Building, 600+ Minimum Credit Score Companies in business at least one year(for LLC)
$100,000+ in gross annual revenue
At least one owner with a 600+ personal score
5+ Commercial Loans
- Property Types1-4 Family & Multi-Family Non-Owner Occupied Real Estate; Condos; Townhomes; 5+ Apartments; Mixed-Use Properties
- Interest Rate: 4-7% Fixed with I/O payment Up to 80Months and Cash out option.
- Term: 2,5,7,10,15, years term and 30 years Full Amortization (12-Month Extension Available)
- Loan Amount: $300k to $100M+
- Debt Service Coverage Ratio: 1.05x
- Net Worth: Gross income must be 5%+ of total loan request.
- Property Value: ”As-Is” Appraised Value Must Be Greater Than $450k
Purchase – Lesser of up to 90% of the As-Is Value or Up to 90% Loan-to-Cost;
Refinance – Up to 100% of the As-Is Value
Cash-Out – Up to 85% of the As-Is Value