Apartment Loans

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

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 Guidelines

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 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