Multifamily Financing
Streamline your next rental property purchase, refinance or renovation with lending solutions designed for multi-family properties.
Customized Loans for Rental Property Owners
Multifamily properties are a very popular type of real estate investment. As a result, there is a wide range of quality lenders in this space.
That being said, it’s helpful to understand the options available to multifamily property investors.
Financing Options – An Overview
Fannie Mae and Freddie Mac
Also called “Agency Loans” since they both operate under a government charter. These loans represent a significant share of the multifamily mortgages in place today.
Accordingly, these loans are attractive for their high leverage levels – 75’%-80% – and low interest rates.
FHA Loans
Also known as “FHA-insured financing,” due to being government insured loans.
In Sum, these loans are desirable to investors because they offer the longest term, lowest fixed interest rated and highest leverage – up to 85% to 90%.
CMBS Loans
Also known as conduit loans. These loans are commercial loans secured by a first lien position on commercial property. The process to qualify for these loans are more stringent, nevertheless, investors like these types of loans for several reasons. To begin with, they are usually non-recourse, and also fully assumable.
Bridge Loans
These are short term loans that bridge a gap prior to permanent financing being in place.
Bridge loans are commonly used while repositioning a property – while making improvements or filling vacancies. Thus, improving the chances of getting competitive permanent financing, or alternatively, selling the asset after it’s stabilized.
Bridge loans typically have higher interest rates and are for terms ranging from 18 months to two years.
Bank Loans
Banks offer loans to buy, refinance or for construction on multifamily property.
However, bank terms can be very stringent, including recourse and offering lower leverage than other lending options.
Whether you’re looking to purchase a new rental property or refinance or renovate an existing property, Insider’s Finance will pair you with the best lender to help you meet your goals.
An Overview of Multifamily Lending
Program Features
Location: NationwideLoan Amounts: $100,000-$100,000,000
LTV: Up to 80%
Term: 3-30 Year Fixed Term, up to 30 Year Amortization
Prepayment: Interest only and fully amortized options
Guarantee: Recourse & non-recourse options available
Prepayment: Flexible prepayment options available
Financing Multi Family Property
What’s more, refinancing can be a great option for investors with an existing mortgage on their multifamily property.
There are many benefits of refinancing. In fact, on top of securing a lower rate, you can length your term, address a maturing loan, plus a lot more.
When refinancing, you’ll use the funds from a new loan to pay off your existing commercial mortgage.
Hence, motivation to consider a refinance include:
1. Lowering your monthly payment
2. Changing Loan Terms
3. Tapping into equity to make improvements.
4. Tapping into equity to add new commercial real estate
Multifamily Mortgage Broker
Insider’s Finance is your full-service mortgage brokerage firm. We specialize in commercial, multi-family, SBA, and single-family financing. Using our deep industry experience and network and not to mention our commercial loan underwriting experience, we are ready to help you secure better terms and faster approvals than by going it alone. But more importantly, we’re a business with a heart for service. We have a passion for making your business and real estate goals a reality.
Also, we understand every client’s needs are different, and that’s what we understand better than you’ll find working alone with traditional lenders. Therefore, when others say no, we connect you with lenders that want to say yes. Most importantly, we leverage the entire capital marketplace. Serving as your single point of contact with multiple lenders during the process.
We look forward to learning more about you and discovering how we can help make your real estate goals a reality.
To get started, contact us by clicking the button below.
Contact Us Today
We look forward to learning more about you and discovering how we can help make your loan goals a reality.
Contact us by clicking the button below.