Where to Get Best Apartment Loan Rates - Don’t Know? Call ALB Commercial Capital

Wish to get the best apartment loan rates? You can! Continue reading to know how can you avail best apartment loan rates from ALB Commercial Capital at the nick of time. Let’s delve deeper!!!

Interested on apartment building investments for commercial properties? Maybe you are looking for affordable yet best apartment loan rates. All you need to do here is; select a reliable and praiseworthy banking or financing company that will sanction your desired loan amount at best rate. ALB Commercial Capital is the perfect commercial loan financing company and advisory firm that grants best apartment loan rates to the people with financing and refinancing needs.

In recent unstable financial markets, the confident depositor wishes to view past conventional financial means, such as stock and bond, to make sure they have an extended capital development and safety. Many beginner real estate business investors have refrained from apartment building financing. Hardly anyone knows if investors will be short of apartment due to increasing mortgage expenses and a monetary hold back. At this circumstance, ALB Commercial Capital is the best in apartment loan rates that will help you get apartment loans at vigorous rates.

How Are Best Apartment Loan Rates Determined?

Most Banks make use of money wholesale and sell it to you as an investor in apartment buildings at retail. So now the question is how are apartment loan rates determined?

Apartment loan rates begin with what is called an index, such as U.S. Treasury yields, the Federal Funds Rate, or else Prime Rate. A fringe of basis points is then added to the index to determine today’s apartment loan rates. For example: today’s rate on a ten year fixed apartment loan is determined by adding the 10-year Treasury yield (the yield on U.S. government boards). 2.74%, to a spread of 2.25%, for an apartment loan rate of 4.99% on a ten year fixed mortgage. Numerous apartment building construction loans are tied into prime rate as the index. An example would be prime rate listing of 3.25% plus a margin of 1.50% which would be a rate of 4.75%.  

Different Types Of Best Apartment Loan Rates, Terms & Qualifications to Know before Applying

There are three most advantageous types of apartment loans available for you with best rates:

    Government-Backed apartment loan- these loans are right for local investors because there are many options available and the borrower must have “local ownership.” This means that they can only invest in an apartment building within the community they reside in. the apartment loan rates of government backed apartment loans ranges from 4.5 - 5.75%

    Bank Balance sheet apartment loan option- this loan is best for investors who are “absentee owners” because these loans don’t require the investor to live in the same community that the apartment building is located. And the apartment loan rates ranges from 5 – 6%

     Short term apartment financing options- these loans are right for fix-and-flip investors who want hard money to quickly purchase and renovate an apartment building while competing with all-cash buyer’s quick time line. Private money can be great short term alternative for purchasing apartments. The apartment loan rates ranges from 7.5 – 12%

Contact ALB Commercial Capital’s expert advisory team to find out what best apartmentloan rate is available for you. Check and compare your options and opt for the best service here with us. Lets work together to bring your dreams into reality! Call us now for best apartment loan rates!

Freddie Mac Hybrid Small Apartment Loans Tailored for Small & Multifamily Borrowers

Freddie Mac hybrid small apartment loan is the industry’s most competitive small apartment loan program for financing large multifamily loans, particularly loans worth of $10million. Freddie Mac hybrid small apartment loan program is helping to be competitive in the small balance market, and has been accepted by borrowers with open arms.

One of the most substantial obstacles to originating small balance loans is the cost to the borrower. Third party reports and lender legal don’t vary much with the loan size, leaving fixed origination costs for a $1million loan very similar to those of a $10million loan. Freddie Mac hybrid small apartment loans have therefore coming with a streamlined small balance loan program with substantially compressed fixed costs and rates as competitive as those for large loans.

How to Qualify for Freddie Mac Hybrid Small Apartment Loans?

Loan Amount: $750,000 minimum  to $7.5 million maxium

Loan Uses: Acquisitions or Refinances

Loan Terms on Freddie Mac Hybrid Small Apartment Loans:

• 20-year hybrid ARM with initial 5,7, or 10 year fixed rate period, or    
• 5, 7 or 10-year fixed rate loan
• ARMs typically based on 6-month LIBOR with up to 1% rate adjustments every 6 months. Lifetume cap set 5% over starting rate

Amortization: Up to 30 years, partial interest-only options available, full-term interest-only options may also be available in certain circumstances.

Interest Rates:

• Top Markets: From 3.90% 5 Years Fixed, 4.35% 7 years fixed, 4.60% 10 years fixed
• Standard Markets: From 4.48% 5 years fixed, 4.70% 7 years fixed, 4.98% 10 years fixed
• Small/Very Small Markets: Add 20bps to standard market pricing

Eligibal Properties for Freddie Mac Hybrid Small Apartment Loans:

• Multifamily: 5+ unit market-rate multifamily properties. For loans larger than $6million, properties with more than 100 units must be approved by Freddie Mac
• Non-Contiguous Properties: Allowed if within same zip code and manageable as a single asset
• Occupancy: 90% for past 90 days (exceptions down to 85% and down to 30 days for new construction). 85% occupancy may also apply to properties with 30+ units, or acquisitions with no history of serious crime, or that have been recently taken over by sophisticated management.
• Mixed Use: Aviable subject to no more than 40% non-residential income and no more than 40% of net rentable area.
• Affordable: Low income housing tax credit properties with land use restriction agreements that are in either the final 24 months of the initial compliance period or the extended use period. Or, properties with tenant-based housing vouchers, and properties with local rent subsidies for 10% or fewer units where the subsidy is not contingent on the owner’s initial or ongoing certification of tenant eligibility are also eligible.

Ineligible Criteria:

• Seniors housing with residential services
• Student housing greater than 50% concentration
•  Military housing greater than 50% concentration
• Properties with housing assistance program section-8 contracts and other project-based housing assistance payment contracts
• LIHTC properties with LURAs in compliance years 1-12
• Tax-exempt bonds interest reduction payments
•  Historic tax credit properties with a master lease structure

Want to pre-qualify for Freddie Mac hybrid small apartment loans? Get in contact with the expert loan advisors from ALB Commercial Capital! We look forward to answer all your questions? Give us a call today!