Apartment Building Lending, up to 80 LTV

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       Commercial Mortgage Unlimited  specializes in funding full doc apartment buildings in the USAAs a Correspondent lender we have access to mortgage capital and has financing available with loan amounts ranging from 250,000 to 300,000,000 million. The first loan program we are going to present is a popular full doc loan small loan program. This program is best for financing loans from $750,000 to $5,000,000 nationally. We provide expert solutions to satisfy small loan needs. Our goal is to move our clients through the process expeditiously, responding quickly with credit decisions, critical updates and any program guideline changes.

Fannie Mae Multifamily Loans

Fannie Mae is one of the nation’s leading secondary market sources of capital for apartment building financing. Fannie Mae provides mortgage capital for conventional, affordable housing, cooperatives, senior housing, student housing, manufactured housing communities and mobile home parks nationwide. Fannie Mae’s apartment loan program offers many distinct advantages over traditional bank programs, including: long-term fixed rates up to 30 years, high LTV ratios up to 80%, and nonrecourse financing (no personal guarantee to the principals). Fannie Mae’s offerings include:

Fannie Mae Multifamily Small Loans

Description

Simplified loan approval process for long term fixed rate financing for apartments, manufactured housing, mobile home parks, and cooperative apartments.

Loan Amount

$750,000 – $3,000,000 nationwide – up to $5,000,000 in major markets

Loan Terms

Fixed rates for 5, 7, 10, 12, 15, 20 and 30 years

Amortization

Up to 30 years, based on the age and condition of the property

Prepayment Penalty

Yield maintenance and step-down options available

Recourse

Non-recourse lending is available

Debt Service Coverage

1.25x minimum

Loan to Value

Up to 75% maximum LTV for refinances and 80% for purchases

Subordinate Financing

Supplemental mortgages are available after the first 12 months of the loan term or loan assumption

Occupancy

Typically expect to see 90% occupancy for the previous 3 months

Assumability

Non-recourse loans are assumable with the Lender’s consent and a 1% fee

Taxes and Insurance Escrows

May be waived on lower LTV loans

Net Worth and Liquidity

Net worth and liquidity requirements must be met

Replacement Reserve Escrows

To be determined based upon appraisal and engineering reports

Rate Lock

Rate lock occurs after commitment is issued; an early rate lock option is also available

Fees

Due Diligence Fee: $4,500 – $8,500 non-refundable fee for 3rd party reports and processing

Timing

45-60 days from complete application to closing

Fannie Mae Multifamily Large Loans

Description

Long term, fixed rate financing for the purchase or refinance of apartment buildings, mobile home parks and cooperative properties

Loan Amount

$3,000,000 and up

Loan Terms

Fixed rates for 5, 7, 10, 12, 15, 20 and 30 years

Amortization

Up to 30 years, based on property condition; Interest-only financing is available

Loan to Value Maximum

Up to 80%

Coverage Minimum

Typically 1.25x, 1.20x in certain markets

Borrower

Domestic single asset borrowing entity is required

Interest Rate

Subject to “tiered” LTV ratio (55%, 65%, and 80% tiers)

Prepayment Terms

Yield maintenance and step-down prepayment options available

Third Party Reports

MAI Appraisal, Physical Needs Assessment, and Environmental Phase I Assessment are required, plus Seismic Report may be required for properties in Seismic Zones 3 and 4

Escrows

Real estate taxes, insurance, and replacement reserves subject to underwriting guidelines

Application Fee

$10,000; covers 3rd party reports and processing/underwriting costs

Legal Fees

$8,000 to $12,000 varying with characteristics of the deal

Timing

45-60 days from application to closing; dependent on 3rd party report timing and borrower’s submission of due diligence

Rate Lock

Typically, lock occurs after commitment is issued; Early Rate Lock option is available, allowing rate lock within 3-4 weeks of application

Assumability

Loan is assumable, subject to lender approval.

**We are now an approved Fannie Mae mezzanine lender, able to write mezzanine loans behind DUS first mortgage loans that we originate. One of only 4 such approved firms. We can assist borrowers who need additional leverage up to 85% LTV and down to a combined DSCR of 110%, per Fannie Mae program.

Freddie Mac Multifamily Small Loan Program

Freddie Mac is another nationwide source of mortgage capital for apartment building financing. Up until recently, Freddie Mac focused exclusively on large balance loans. Now, Freddie Mac has unveiled a small balance apartment loan program to compete with Fannie Mae. These loans have very competitive rates, flexible prepayment options, and allow for cash out. These loans are called hybrid ARMs as they have fixed rates for the initial 5, 7, or 10 years followed by an adjustable-rate period and 30 year amortizations.  Available options include a five-year fixed followed by a 15 year adjustable, seven year fixed followed by a 13 year adjustable, and a 10 year fixed followed by a 10 year adjustable. All loans come with step down prepayment penalties (such as 5%, 4%, 3%, 2%, 1%) instead of yield maintenance.

Loan Amount

$1 million to $5 million

Loan Purpose

Purchase or refinance, including cash out refinances

Amortization

Up to 30 years

Property Types

Apartment buildings of 5+ units

Debt Service Coverage

1.20x in top markets, 1.25x nationwide

Maximum Loan to Value

80%

Recourse

Non-Recourse

Credit Score

Minimum of 650

Interest Only

Interest only loans are available

Occupancy

Minimum occupancy of 90% for 90 days

Taxes/Insurance

Escrows for taxes and insurance may be waived

Replacement Reserves

Not usually required

Rate Lock Deposit

1% at rate lock, refundable at closing

Adjustments

Annual and lifetime caps on all adjustments

Assumable

Yes

 

Whether you need funding for an apartment building with a full doc loan , No Doc , or Limited Doc program I can fit you into the best program. All loans in general are based on the borrowers financial strength and the current or projected cash flow.

If you want to purchase an apartment building with a Bridge Loan here is a great product. Please log onto my Bridge Loan Page for more information about Bridge loans.

Bridge Product

·         Multifamily, Retail, Office, Industrial, and Self-Storage (Value-Add opportunities)

  • Flexible loan terms & prepay (1-3 years with extension options)
  • Loan amount is determined by using in place cash flow as low as a 6.75% Debt Yield
  • Up to 80% Loan to Purchase plus CapEx costs or 75% of stabilized value
  • 1% Lender Fee, 1% Exit Fee; Exit Fee is waived if we (HMG) provide the takeout loan
  • Pricing from 475bps to 525bps plus 30 day LIBOR (we are currently aggressive for this)

·         Minimum Loan Amount:  $5MM Multifamily; $7.5MM Commercial (up to $50MM)

  • Non-Recourse

 

 

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Fannie Mae’s Multifamily Mortgage Business loan program. Multifamily 5+ units. Max 80ltv Rate in the 4%’s

Low cost of execution  Competitive rates  Delegated model provides lenders and borrowers speed of execution  Team with experience and scale to support this unique market  Single asset security allows the most flexibility in the market  Extensive experience serving the small loan market  Streamlined third-party reports

Eligibility

Conventional properties; Multifamily Affordable Housing Properties; Cooperative Properties (market rate); and Manufactured Housing Communities.  Existing, stabilized multifamily properties  Properties with 5 or more units  Loans for acquisition or refinance

Fannie Mae’s Multifamily Mortgage Business offers a streamlined loan process for fixed- and variable-rate mortgage loans up to $3 million nationwide and up to $5 million in certain eligible markets.

We offer fixed or floating rate financing for acquisition, refinancing and moderate rehabilitation. Terms range from 5 years to 30 years and may be fully amortizing, or contain partial or full interest-only options. Through these programs we offer first mortgage financing and subsequent supplemental (subordinate) financing and/or substitution of single assets

Loan Amount Up to $3 million nationwide Up to $5 million in certain eligible markets

Term 5 – 30 years.

Amortization Up to 30 years.

Interest Rate 4-5% Fixed- and variable-options available.

Maximum LTV 80%.

Minimum DSCR 1.25x.

Supplemental Financing Supplemental Loans are available.

Prepayment Availability Flexible prepayment options available, including yield maintenance and declining prepayment premium.

Rate Lock 30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock or Early Rate Lock options.

Accrual 30/360 and Actual/360.

Recourse Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy. Escrows Replacement reserves, tax, and insurance escrows are typically required for higher leverage transactions.

Third-Party Reports Streamlined inspection and Environmental Screening using the ASTM E-1528-14 protocol.

Assumption Non-recourse loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience

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The last Fannie Mae loan I funded was a refinance for a 112 unit apartment building.

If you are interested in this type of funding most lenders would start with the following questions?

Is this his first multifamily property, does he have any prior ownership or management experience? If not he will definitely need local third party property management

Net Worth needs to be equal to loan amount and liquidity (post-closing) needs to cover 9 months of the annual debt service.

Please email me your loan request and I will call you and in a five minute chat I can determine which loan program is best suited for your loan request.  We offer other limited doc and no doc long term loan programs in the 8%’s for clients who cannot qualify for full doc loan programs.

My name is Mark Fulop and I am the processor at Commercial Mortgage Unlimited. We offer the largest variety of full doc and no doc loan programs in the US.

Pls email me at mark@commercialmortgageunlimited.com

Call me at 201-925-3470 9-5 Eastern Standard Time.

www.commercialmortgageunlimited.com

56 unit funded in NC
45 unit apartment building recently funded in North Carolina

 

We offer a wide variety of products the banks simply do not offer. Our goal is to help investors reach their financial needs whether it is an apartment building that needs renovation or a refinance our stff of experts work for you, not the banks. Many borrowers today have balloons or private mortgage due, some have been turned down by local banks and do not know where to go for the funding needed. We have the contacts and experience to provide the funding you need. Please email or call with any scenario's or questions? mark@commercialmortgageunlimited.com 201-925-3470 Please email any suggestions to improve this web site/ blog? Thanks Mark Fulop Owner/Processor
We offer a wide variety of products the banks simply do not offer. Our goal is to help investors reach their financial needs whether it is an apartment building that needs renovation or a refinance our staff of experts work for you, not the banks. Many borrowers today have balloons or private mortgage due, some have been turned down by local banks and do not know where to go for the funding needed.
We have the contacts and experience to provide the funding you need. Please email or call with any scenario’s or questions? mark@commercialmortgageunlimited.com Direct: 201-925-3470
Please email any suggestions to improve this web site/ blog? Thanks Mark Fulop Owner/Processor