Featured in:
Business Insider
Forbes 
The Real Estate Network
Excellent Customer Reviews
 
 
Apartment loans low rates
Multifamily loan rates and Commercial loans

Commercial Loan Blog

Published February 4, 2012

In 1933, in the aftermath of the Great Depression, President Franklin D. Roosevelt established, with Congress, The Home Owners Mortgage Act by selling government bonds to lenders. The purpose was to help remedy high foreclosure rates and to make it possible for more people to own their own homes. It was mandated that these loans had to be fixed for 20 to 25 years and be fully amortizing (term and amortization match). Eventually this was pushed up to 30 years, with the idea that most people would work for 30 years and then retire with a paid-off home.

... Read More

Published January 28, 2012

The last two weeks, we covered parts one and two of “The Borrowers Strengths Are Most Important to Qualify for an Apartment Loan.” In getting multifamily financing, we shared five strengths needed to get your apartment loan. They are being strong in credit scores, liquidity, net-worth, income, and a lender may require that you have multifamily experience (ownership of a multifamily complex of 5 or more units) to get an apartment loan.

In part one, we highlighted the strength requirements of credit scores for getting an apartment loan, including, as... Read More

Published January 28, 2012

Commercial loans have historically been made foremost to the property, whereas residential loans are made primarily to the borrower. For a commercial loan, the net operating income of the property is foremost in the commercial lender’s mind, then the condition and location of the property. However, since the recession started, the quality of the borrower is just as important as the merits of the property.

It is evidenced in the appraisals, that these two types of loans are quite different. On a commercial loan, the commercial lender orders an ... Read More

Published January 21, 2012

Yes, they do call investing in an apartment complex a passive investment, inferring that all you have to do is wait for the tenants to pay the rents while you sip your pina colada in the shade. In reality, owning an apartment building successfully and owning a passive investment have very little in common. Officers processing multifamily loans know that the number one reason why business fails is because of poor management. They also know that the number one reason why apartment loans fail is because of poor management. In other words owning an apartment... Read More

Published January 19, 2012 

Last week we covered part one of “The Borrowers Strengths Are Most Important to Qualify for a Multifamily Loan.” In getting multifamily financing, we shared five strengths needed to get your apartment loan. They are being strong in credit scores, liquidity, net worth, income, and a lender may require that you have multifamily experience (ownership of a multifamily complex of 5 or more units) to get an apartment loan.

In part one, we highlighted the strength requirements of credit scores for apartment lending, including, as a general rule, a minimum... Read More

Published January 14, 2012

Prior to 2008, which we could refer to as the “good old days,” it was so much easier to qualify for a multifamily loan. Now don’t get discouraged, apartment loans are being done every day. It’s just that the loan standards for multifamily financing have become more demanding. And the key is that the borrower’s strengths are now as important, if not more important, than the required strengths for the property.

So it’s natural to ask, “What are the strengths a borrower needs to qualify for an apartment loan?” There are a number of apartment lending... Read More

Published January 14, 2012 

Can I qualify for an apartment loan if I have very little to put down? Almost all multifamily loans require a minimum of 20% down plus closing costs to purchase an apartment complex. Even before the recession this was the requirement. On average, apartment lenders require 25% down for 'A'-quality permanent multifamily financing. Keep in mind that a lender will want you to have what is called "skin in the game," to approve you for apartment financing. In other words they want you to risk a good chunk of your precious cash, too. They view the risks of an... Read More

Published January 6, 2012 

What criteria is needed to qualify for apartment financing on rehab deals?

First of all, if you are looking for an apartment loan on a multifamily property that needs substantial rehab, you need to have experience with multifamily construction/rehab and experience with repositioning apartment buildings. Repositioning means getting the property in good condition and getting it leased up to where market occupancy is at so you will be able to qualify for permanent multifamily financing. In almost all cases, you will have to acquire the property with a... Read More

Published January 6, 2012 

A number of our clients have wondered when an apartment bridge loan is necessary.

First, it’s important to define what a bridge loan is, for those of you not familiar with bridge loan financing. A bridge loan is a short-term loan that helps you secure financing for a property when the property doesn’t qualify for permanent multifamily financing. The purpose of getting the bridge loan is to have time to improve the property in order that you qualify for permanent apartment financing.

A question may come up of why someone would want to get an... Read More

Published December 19, 2011 

An apartment building loan, also called a multifamily loan, is a commercial loan. Where a residential loan is made primarily to the quality of the borrower, a commercial loan is made to the quality of the income of the property, the quality of the property itself, and the quality of the borrower. So there are really three pre-qualifications for a loan on an apartment building.

THE THREE PRE-QUALIFICATIONS FOR AN APARTMENT BUILDING LOAN

1. The quality of the income of the property
If you take the gross rental income, including rents,... Read More

Published March 9, 2011

In part one, we shared that it’s important to get testimonials from lenders of apartment loans. Testimonials can be a useful tool to help you establish trust. It’s not the only tool – certainly you need to do your due diligence in other ways. These include seeing if they have a Better Business Bureau rating, and doing an online search of their reputation.

In this post, we will encourage you to take it a step further in asking for testimonials from the apartment loan provider you talk with. We encourage you to ask to speak with at least a few of the... Read More

Pages

Subscribe to Commercial Loan Blog