Why should you go for Fannie Mae’s small apartment loan program? Delve below to know!

The Fannie Mae’s small apartment loan program is streamlined with lower loan expenses for the purchase as well as refinance of apartment complexes. Loans range from $750, 000 to $3, 000, 000 and $5, 000, 000 for major cities. The loan can be fixed or floating and are generally non-recourse. It is a great product for diverse multifamily property types, including conventional apartments, affordable housing, senior housing, cooperative housing, as well as manufactured housing. These loans are available for experienced multifamily investors and manager.

Are you eyeing for a reliable private investor for Fannie Mae’s small apartment loan program? Then ALB Commercial Capital is the optimum and leading Fannie Mae small apartment loan provider that is built and designed firm for customers to meet their unique requirements.

Loan features:-

• The minimum amount of the loan starts $750,000

• Maximum length of amortization is 30 years

• Maximum term of the loan is of 30 years

• Structure rates of the loan program is both fixed and adjustable

• LTV Maximum- Eighty percent of term is 7 years or greater. 75% if cash out. If its five year term, then its seventy-five percent and with cash out its 70%

• DSCR Minimum allowed- 1.25

• The Type of property that qualifies is 5 or more units of an apartment complex

• Requirements for occupancy is 90% or greater

• Individual borrowers, US Citizen, Co-tenants allowed, as well as single asset entities are the borrowers eligible for this loan program.

Tips before borrowing loans:-

 Don’t be afraid to ask questions if you don’t understand

 Stay on top of treasury index changes; if they drop substantially, you may want to consider advance rate locking if the fee is not too expensive

 Ask for an estimate of potential legal costs upfront and to be notified if or when that changes

 Origination fees can sometimes be negotiated down

 Disclose any potential credit issues upfront on the borrowing entity, sponsors, or sponsor holdings. You don’t crave to have paid thousands of dollars in deposits only to find out later you don’t qualify for the loan because of a previous credit issue

 Make sure you separate out any one time capital expenses from the rest of your NOI in your operating statements so they aren’t included in regular expenses

 If you are asking for cash out, make sure you have legitimate commercial uses for the money that you are asking for above the refinance cost and loan payoff.

We hope that all your queries have been solved through this blog post describing Fannie Mae’s small apartment loan program, if still have any doubts, then straight away visit our website to know more!

Written by: Published by: Albcommercialcapital on 25/03/2019