The multifamily mortgage loan provides financing for properties with 2-4 units. These can be primary residences with the other units rented or investment properties without owner occupancy.
Generally, you need strong financials and multifamily experience to 후순위아파트담보대출 qualify for these loans. Credit standards are more rigorous and underwriting is intense.
1. Community Banks
Multifamily mortgage loan applications are processed by a variety of lenders including Community Banks, Regional Banks, Credit Unions and National Banks. Each lender has their own unique loan programs and requirements.
Choosing the right lender depends on your specific goals and objectives for your multifamily investment. For example, you might be looking for a fixed rate term or a short loan period. In some cases, you may also want to avoid a prepayment penalty.
Many local community banks specialize in mortgage lending, and they are often the best source for a multifamily loan. They typically have an expert team and a close relationship with the communities they serve. They are often more willing to work with borrowers who have credit challenges and other unique situations.
Additionally, community banks are often more flexible in their requirements than larger banks and can provide loans for properties with lower occupancy rates. This can be a good option for new investors who don’t have the required experience to qualify for a Fannie Mae or Freddie Mac loan.
2. Regional Banks
When considering a multifamily mortgage loan application, lenders will take into account your property income and cash flow. They will also look at your total debt-to-income ratio, which includes recurring debt like car payments and student loans and minimum monthly payments on revolving credit lines like credit cards.
Typically, regional banks are defined as those with consolidated assets between $10 billion and $50 billion at the bank holding company level. This size range encompasses smaller regional banks that may resemble a super-sized community bank to larger regional institutions with broader market power.
Regional banks often manage a broad suite of financial products and services, but they are also more likely to focus on building strong relationships with clients in their local communities. This makes them an attractive option for borrowers and developers seeking a highly tailored banking experience. In addition, these institutions are more accustomed to working with complex real estate and can provide expert advice on localized financing and market trends.
3. National Banks
There are a number of large national banks that can help with multifamily mortgage loan applications. These lenders are typically more flexible than small local banks and can offer competitive rates and terms for the right borrowers. However, they typically require strong personal income and net worth, previous property ownership experience and a high credit score.
Multifamily loans are collateralized by a wide range of properties, from a suburban garden apartment occupied by a family of four to a high-rise condominium complex that provides a living space for young professionals. Often, these properties are operated as businesses to generate income. Servicing these properties involves reviewing financial and other property-level reports on a regular basis, conducting periodic site inspections and managing a variety of complex commercial requirements such as property insurance.
Government-backed multifamily loans, including the HUD 221(d)(4) and the FHA 203(k), offer some of the most competitive financing available. These loans feature long loan terms and a low, fixed interest rate.
4. Credit Unions
Credit unions are not-for-profit financial institutions that offer their members a variety of banking products, including mortgage loans. Those who choose to join a credit union typically enjoy more flexible application processes and lower interest rates than those offered by banks or other lenders.
Credit Unions generally have less restrictive guidelines than banks or other mortgage lending sources when it comes to approving multifamily mortgage loan applications. That said, borrowers who are applying for a loan at a credit union should be aware of their specific requirements before beginning the process.
The most important consideration when comparing lending options is the lender’s loan-to-value (LTV) ratio. While most banks, credit unions and CMBS lenders only allow for LTVs up to 75%, HUD multifamily, Fannie Mae multifamily and some hard money or private money lenders will go as high as 80% for cross-collateralized properties.
In addition to LTV, it’s important to consider other underwriting criteria as well. For example, a borrower’s track record, property management experience and financial capacity will be assessed during the underwriting process.