Apartment Loans

November 7th, 2008
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Apartment owners have a number of capital sources available to finance their apartment loans. Over the past decade Banks, Credit Unions, Life Companies, and Conduit Loan programs have become popular choices for multifamily investors looking for capital to meet their apartment lending needs. In today’s lending climate government programs including Fannie Mae and FHA (Federal Housing Administration) have risen in popularity and are seen as a sure fire way to get deals funded. Below are the details on apartment loan programs available nationwide. We recommend you contact a lender to discuss which apartment loan program will work best for your property

Traditional Apartment Loans

Traditonal Apartment Loan Program 
(Loan Amounts: $500,000 – $5,000,000)
Program Rates Max LTV Amort Prepay Penalty DCR
3 Yr. Fixed *Call 80% 30 Years 3,2,1 1.15-1.20
5 Yr. Fixed *Call 80% 30 Years 5,4,3,2,1 1.15-1.20
10 Yr. Fixed *Call 80% 30 Years 10,-1 1.15-1.20

 General Guidelines for Traditional Apartment Loans

 Purpose:                  Refinance and acquisition
 Loan Size:               $500k and $5,00,000
 Amortization:           Up to 30 years
 Interest Rate:           Fixed or Adjustable
 Rate Lock:                Early Rate Lock Available
 LTV:                         80% maximum Refi or Purchase
 DSC:                        1.15 minimum
 Liability:                   Typically recourse
 Prepayment:             Step Down
 Assumptions:          At Lender Discretion
 Escrows:                  Typically Taxes and Insurance

 

Small Balance Fannie Mae Loans

Small Balance Fannie Mae
(Loan Amounts: $500,000 – $3,000,000, $5,000,000 in select markets)
Program Rates Max LTV Amort Prepay Penalty DCR
5 Yr. Fixed *Call 80% 30 Years 4.5 Yr. Yield Maintenance 1.20-1.25
7 Yr. Fixed *Call 80% 30 Years 6.5 Yr. Yield Maintenance 1.20-1.25
10 Yr. Fixed *Call 80% 30 Years 9.5 Yr. Yield Maintenance 1.20-1.25
30 Yr. Fixed *Call 80% 30 Years *Call 1.20-1.25

Small Balance Fannie Mae Guildlines 

 Purpose:                  Refinance and Acquisition
 Loan Size:               $500,000 to $3,000,000
 Amortization:           Up to 30 years
 Interest Rate:           Fixed or Adjustable
 Rate Lock:                Early Rate Lock Available at Commitment
 LTV:                         80% Maximum Refi or Purchase
 DSC:                        1.20 minimum
 Liability:                   Typically Recourse with Standard Carve Outs
 Prepayment:             Yield Maintenance
 Assumptions:          With Qualified Borrower
 Escrows:                  Typically Taxes, Insurance, and Replacement Reserves if Required   

 

      Standard Fannie Mae Loans

Standard Fannie Mae
(Loan Amounts: $3,000,000 – $50,000,000)
Program Rates Max LTV Amort Prepay Penalty DCR
5 Yr. Fixed *Call 80% 30 Years 4.5 Yr. Yield Maintenance 1.20-1.25
7 Yr. Fixed *Call 80% 30 Years 6.5 Yr. Yield Maintenance 1.20-1.25
10 Yr. Fixed *Call 80% 30 Years 9.5 Yr. Yield Maintenance 1.20-1.25
30 Yr. Fixed *Call 80% 30 Years *Call 1.20-1.25

        Standard Fannie Mae Guidelines

 Purpose:                  Refinance and Acquisition
 Loan Size:               $3,000,000 to $50,000,000
 Amortization:           Up to 30 years
 Interest Rate:           Fixed or Adjustable
 Rate Lock:                Early Rate Lock Available at Commitment
 LTV:                         80% Maximum Refi or Purchase
 DSC:                        1.20 minimum
 Liability:                   Typically Recourse with Standard Carve Outs
 Prepayment:             Yield Maintenance
 Assumptions:          With Qualified Borrower
 Escrows:                  Typically Taxes, Insurance, and Replacement Reserves if Required 

 

  1. BILL BRANNEN
    April 13th, 2009 at 09:50 | #1
    Reply | Quote

    LOAN REQUEST
    LOAN SIZE $325,000
    VALUE (PUR) $ 400,000
    TYPE 8-UNIT M-F APARTMENT BUILDING
    CREDIT SCORE 800
    LOCATION ST PETERSBURG, FL
    TERM 30-YEARS
    BILL BRANNEN 708.218.1622

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