Loan Products and Services
Lenders Love Multifamily Loans - this is the easiest commercial property type to obtain a loan on. 14 Top Apartment/ Multifamily Loan Programs - Offered by HUD/FHA (lowest long term fixed rates), community banks, credit unions, Fannie Mae, Freddie Mac, Life Companies, Hard Money lenders and more. We will work with you to help you get your best possible loan.
Some of the best rates and terms available. Rates can be fixed from 5 to 30 years. No tax returns Required, up to 80% loan to value available, Loan assumable for 1% fee. Non-Recourse, Commercial space 35% of rental space or 20% of gross income.
One of Apartment Loan Store's lowest rate programs. These loans are sold to Freddie Mac for securitization in mortgage pools on Wall Street. Freddie Mac’s multifamily loan program includes market rate, senior housing, student housing and affordable housing. $1M minimum loan size, amortized for 30 years, LTV maximum is 80%, term up to 20 years.
With the lowest 30 to 40 year fixed rates in America, our HUD Apartment loans are by far the most attractive multifamily financing available in the US. Apartment Loan Store has been a specialist in funding HUD Multifamily Apartment Loans since 1999 lending in all 50 states. Best for loans of 2.5 million and up, non-recourse, highest loan to value.
Apartment Loan Store has one of the best interest only multifamily perm loan programs available in America. Interest only payments are available from 1 – 10 years depending on Loan to value, DSCR and where the property is.
Refinance your commercial property with a securitized loan up to 80%. Most banks go up to 75% LTV and prefer to not do a cash out refinance. Private and Securitized Lenders as well as Life Companies have no problem with cash out refinancing for any reason. They view it as “this is your money, do what you want with it”.
The 7 best apartment building rehab loans in America, are ranked based on maximum loan to cost, interest rate, loan term, what it takes to qualify and customer satisfaction. Choose the multifamily rehab loan that is the best fit for you.
The best cash-out refinancing apartment complex loans are: HUD/FHA, at 80% and a very low 35 year fixed rate, Fannie Mae at 75% and the lowest 10 to 15 year fixed rate, and Freddie Mac at 75% which has the lowest 7 – 10 year fixed rate for big cities. Lastly is with a 10 year fixed at 75% with lower requirements.
Apartment Loan Store has specialized in bad/poor credit apartment/multifamily loans since 1997 for investors with less than good credit. With three programs to choose from (see below) our poor credit apartment loan specialists will find the poor credit apartment financing that is right for you.
Since 2002, Apartment Loan Store has offered 4 Affordable Housing Loan programs nationally. These programs have been created to preserve existing affordable housing apartment complexes and to encourage the development of new ones.
Since 1997, Apartment Loan Store has specialized in Senior Housing Financing for 55 and older communities and facilities offering: Independent Living, Assisted Living, Memory Care and Nursing Home Care Nationwide.
CMBS Loan stands for Commercial Mortgage Backed Security Loan. Also know as a conduit loan, these Commercial Real Estate loans are pooled with other loans with the same maturity and sold as mortgage backed security bonds to investors. CMBS loans have low rates and can be fixed for 5 or 10 years.>
CMBS loans are quite popular at Apartment Loan Store because they are stated in nature in that they do not require tax returns. Furthermore, these loans do not require the high net worth and liquidity (cash) that most Commercial Real Estate Loans require.
At Apartment Loan Store we have specialized in fast funding apartment bridge loans since 1997. Apartment bridge loans are used to finance apartment buildings that need remodeling or rehabilitation or are not stabilized (meaning they have lower than market occupancy and/or income). Our Multifamily Bridge loans typically have a term of one year to two years with rates starting in the five to six percent range for stronger borrowers and properties with a 30-day closing, and rates starting in the seven percent range for borrowers that have lower credit scores, lower liquidity, net worth or have properties that are in need of major rehab. We can close an apartment bridge loan in as little as 2 weeks.
Mezzanine financing enables a property or business owner to put less money down. It is different from a real estate loan in that it is not secured by a lien on the property but by an ownership interest in the real estate or business. Mezzanine debt fills the gap between debt and equity on highly leveraged real estate or business transactions.
With 7 Construction Apartment Loan programs to choose from, and over 100 direct lending sources, Apartment Loan Store will match you with the Multifamily construction loan program that is right for you. Call one of our friendly Multifamily Construction Loan Specialists to determine which of the programs below is right for your development.
Commercial Construction is the remodeling or ground up construction of commercially zoned buildings for Apartments, Self-Storage, Industrial, Office, Retail, Medical, Schools, Hospitals, Small Businesses and Hotels. Prices per square foot range from $10 for industrial to over $150 for Apartments and office.
The FHA/HUD 221 (d)(4) provides assumable non-recourse construction and perm financing for new apartments or substantial rehabilitation of existing apartments. Featuring 85% loan to cost (no loan to appraised value) a 40 year very low fixed rate, a 40 year term and 40 year amortization – you can see why this is the best construction roll over to perm loan in America. If you are bringing in investors, the non-recourse feature makes this loan a must – especially since it is difficult to find a non-recourse construction loan.
With 7 Mixed Use Commercial Loan Programs to choose from, Apartment Loan Store will find the right Mixed Use Property financing for you. We will find the right Mixed Use building loan for you with the lowest rates.
Commercial loans take three prequalifications. They evaluate the quality of the borrower, the quality of the property's income and the quality of the property itself. If just one of these do not qualify, it will sink your loan.
With the lowest long term fixed rate mobile home park financing since 1997, Apartment Loan Store has 6 mobile home park loan programs for manufactured housing communities. Find the mobile home park loan that is right for you. Our experienced mobile home park financing specialists will analyze the quality, location, services, and number of park owner owned homes to determine which loan program is the best fit for you. Based on your long or short term strategy for the property we can customize the fixed rate term from 5 to 30 years.
At Apartment Loan Store, we have a deep background in Student Housing Lending, and are proud that this is a niche we excel in. Since 1997 we have specialized in funding all types and sizes of student housing properties located near universities and colleges. With four Student Housing Programs to choose from, we will find the right program for you. Student Housing differs from all other multifamily properties in that it's more often rented by the bed, not the unit. Most lenders require that the students sign yearly leases and that the leases are guaranteed by a parent.
Financing more than Four 1 – 4 unit rental properties can be easy with Apartment Loan Store’s Multiple Rental Property Loan Program. This is also known as a blanket mortgage, which covers two or more properties with one loan.
Apartment Loan Store has 4 Stated Income Commercial Loan Programs that do not require personal or business tax returns. There is absolutely no statement or verification of personal or business income, no debt to income ratio (DTI) and no W-2 forms or wage statements required. Some of these Commercial Stated Income Mortgages have amazingly low rates.
Apartment and multifamily loan rates range from 4.88% for a 7 year fixed Fannie Mae loan, to 5.38% for a 10 year fixed Freddie Mac loan. In the middle is a 35 year fixed FHA loan at 5.42%.
Commercial Construction Loan Rates vary from around 4.00% to 12.00%, based on the lender's cost of funds. Also, the experience, credit and financial strength of the developer and key principals on the project are all factors.
By the time you apply for a non-recourse loan, the lender already knows what return they want or need to have on their money. The total return is based on a combination of interest rate and points. For example: If the interest rate is 6.00% and the points charged are 2.00%, annually the lender will be earning a yield of 8.00%. Private money lenders usually lend from a fund, or a group of individual investors. Some lend from a warehouse line of credit. In this case they need to earn a margin of profit over their cost of funds.
Fannie Mae Multifamily Rates change daily. In reality, they change by the minute during Wall Street hours as treasury yields go up or down. These are long term fixed rates that combine the real time treasury yield with the spread determined by Fannie Mae. For example, today as I write this article the 10-year treasury yield is at 3.49%. This is called the index. On a 10- year fixed rate mortgage tier 2, Fannie is adding a spread of 1.95% to the index for an all-in rate of 5.44%. Spreads are raised based on market conditions which raise or lower risk.
Commercial Loan rates for Apartments/Multifamily, just like all commercial loans, usually change daily based on a daily index plus a spread. Most of our apartment loan rates are determined by taking the current 3- to 30-year treasury yield plus a spread of 1.50% to 4.00%.
Freddie Mac Multifamily Rates change daily. They actually change by the minute during Wall Street hours as treasury yields go up or down. These are long term fixed rates that combine the real time treasury yield with the spread determined by Freddie Mac. For example, today as I write this article the 10-year treasury yield is at 3.49%. This is called the index. Now, Freddie adds a spread of 2.05% to the index for an all-in rate of 5.54%. Spreads are supposed to be raised based on market conditions and perceived risks. When Freddie determines market risks are higher, they raise the spreads to slow down demand. When they perceive market risks are lower, they lower the spreads to increase demand.
Are you Buying or Selling at the Top of the Market?
So how do you know if you are buying at the top of the market? Supply and demand is the largest control factor on prices. If there are very few properties for sale in the property class and neighborhood you are shopping in and almost no new construction starts, this is a sign you are purchasing at the top of the market. It is essential to look at the relationship between low cap rates, low net operating income and how much time it might take you to raise rents and realize the return on your investment. Most buyers pay too much for commercial properties when cap rates are historically low, rationalizing that rents can be raised over time. But how much time are we talking about? If it is going to take more than a year for you to reach the cash on cash return you want by raising rents, you are likely paying too much for the property. Once unemployment and GDP return to normal, there will be more apartment construction starts which should eventually supply more units in the market than demand. This will be a much better time to buy.