Multi-Family
Financing
We make financing for apartment
buildings easy.
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.
Financing for multi-family buildings.
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.
Flexible solutions for financing an apartment building.
Our FlexTerm loan is great option for multi-family property investors since it offers:
- A simple financing solution on a purchase or cash-out refinance.
- Interest-only payments up to 10 years.
- The flexibility to remain in the loan for up to 30 years with no balloon payment.
- Lower monthly payments than a hard money loan.
Get the information you need.
To learn more, call (888) 822-3304 , or complete the contact request form below and one of our investment and small commercial property specialists will reach out to you.
