Why Choose a Fannie Mae or Freddie Mac Multifamily Loan?

December 18, 2015

The answer is simple. If you are looking to purchase or refinance a multifamily property (defined as 5 or more apartment units), Fannie Mae and Freddie Mac are the best loan programs in America today. Why are they the best? Because of very good rate and terms. And they are US Government backed loans. Because they are backed by the US government, they are very secure loans.

In the meanwhile, we fund multifamily loans as well as other types of commercial loans – including bridge loans, business loans, construction loans, mini-storage, office, retail, senior living, medical, hotel and other types of commercial loans. Call us for any of your commercial loan needs. Find out how big of a property you can pre-qualify for. It takes a simple phone call or text: 214-695-7310 or email bruce@businessloanstore.com

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Getting back to this blog - here are some benefits of acquiring Fannie Mae or Freddie Mac loans for your multifamily purchases or refinances:

1.You are going to get a very good rate. It is not unusual for the rate to be around 1% below most bank loan rates.

2. You will receive a 30 year amortization. Banks often will have a 15 or 20 year amortization  - sometimes 25%. The higher the amortization, the lower your payments.

3.  With a Fannie Mae loan you can get up to a 30 year fixed term rate. This is for a loan of one million dollars and above. Bank loans usually have a fixed term period of 3, 5 or 7 years. Sometimes a bank will have a 10 year fixed term period. Freddie Mac will give you a 5, 7, or 10 year fixed period.

4. With Fannie Mae having a fixed term rate up to 30 years, you have a legacy investment – something you can pass on to your children.

5. Again, because Fannie Mae and Freddie Mac are backed by the US Government, you have a more secure loan.

6. The loan to value is up to 80% for a purchase, and up to 75% for a refinance. The loan to value for banks is most often lower.

7. You can get cash out for any reason if you qualify for it.

Contact us to see if you pre-qualify for our best multifamily, commercial, or bridge loan rates and terms. Keep in mind that one of our specialties is Commercial Construction Lending. Also, contact us if you would like to discuss your particular commercial lending needs, or if you have any questions. Call 214-695-7310, or send an email to info@businessloanstore.com

To discover more about our loan products as well as rates and terms, see our loan programs page.

Bruce Painter, Director of Marketing, Business Loan Store