Financing for Multi-Family
Buildings
Financing for apartment buildings just got easy.
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, 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 down payment.
Flexible Solutions for Financing an Apartment Building.
Our common-sense approach to multi-family property financing allows us to offer flexible loan options to meet the unique needs of investors.
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.
Our Flexible term loan is great option for multi-family property investors since it offers:
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A simple financing solution on a purchase or cash-out refinance.
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Interest-only payments up to 10 years.
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The flexibility to remain in the loan for up to 30 years with no balloon payment.
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Lower monthly payments than a hard money loan.