ALB Commercial Capital: Hire Trusted Apartment Building Loan Experts to Help Determine Appropriate Loan Programs

As America’s leading commercial and apartment building loan providers, ALB Commercial Capital is an industry expert with over 20 years of combined experience in qualifying people for best rate apartment building loans. Obtaining financing without any glitch is often challenging. Investors and owners of income-producing commercial and residential properties have special financing needs. With the right mix of experience, skills, and lender relationships, ALB Commercial Capital has a strong track record of helping owners by providing a broad array of loan programs, competitive pricing, and excellent customer service.

Why Apartment Building Loans Are Always a Great Investment?

In essence, apartment buildings are multifamily commercial loans on an apartment building with more than 5 units. If there are five apartments or less then the loan is in the category of residential lending and not commercial lending. ALB Commercial Capital is an expert in apartment buildings with most of our loans coming in this category. We have programs whether you are looking to buy a small apartment building or something with hundreds of apartments.

We can help you refinance any of your apartment buildings with minimal hassle. ALB Commercial Capital uses many different avenues to get funding including local and regional banks, conduit lenders, Freddie Mac, Fannie Mae, life and insurance companies. Whether you are purchasing or refinancing, we have the customized loan ready.

ALB Commercial Capital – Offering Best Rate Apartment Building Loans Nationwide

ALB Commercial Capital, a commercial mortgage broker reaching private investors, small/middle market real estate entities and multifamily properties, prides itself in providing clients with everything of the best when it comes to apartment building loan funding. There is no sub-market that responds to our connection with the most competitive commercial mortgage lenders in the country than this property sector. All our key services converge when it comes to meeting the diverse needs of borrowers looking for options to enter the dynamic field of multifamily leveraging.

·         Apartment Building Loan Financing Terms:

·         Benefit from our streamlined appraisal process

·         Multifamily loans with VIP attention

·         Up to 80% loan to value ratio is quite conceivable

·         Purchase, refinance, cash out or construction – all options are open

·         Interest only is available; also, amortization & terms up to 30years

·         Interest rates remain lowest in any selected category

ALBCommercial Capital was established to serve as an extended team member to the mortgage realtor, broker, investor, lender or another service provider as a premier nationwide source for multifamily and commercial financing. Discover how we can help you get the best apartment building loan program in connection with the competitive advantage of pricing, flexible terms, customized solutions, streamlined processing, and quick closing. Having the experience and the right relationships with a wide variety of capital sources allows ALB Commercial Capital to expedite the process and approval of various apartment building loans. Contact to get more details about our apartment building loan program for people seeking the best rate financing option!

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

What diverse types of Fannie Mae multifamily lending program are available? Ask ALB

For over 30 years, Fannie Mae multifamily lending has served the secondary mortgage markets as reliable source of mortgage capital in every market, every day. It is one of the single largest sources of capital to the multifamily housing market. This platform offers financing for the acquirement or refinancing of multifamily properties, including 5+ unit apartment buildings and condominiums, seniors housing, student housing, cooperatives, affordable housing and manufactured housing.

If you are in quest of Fannie Mae multifamily lending, then you are at the right place, ALB Commercial Capital is the optimum platform for you to get Fannie Mae loans. Let’s Dig out some more about Fannie Mae and its types below.

Different types of Fannie Mae multifamily Loan program

•Fannie Mae Multifamily small loan program

Fannie Mae multifamily lending small loan program is designed for low cost execution, competitive pricing, reduced documentation, as well as limited third party reports. The small loan program offers borrowers unrivaled performance and value, flexible terms, and streamlined processing for apartment loan size up to $5million.

•Fannie Mae DUS multifamily loan program

The DUS podium is Fannie Mae’s standard multifamily loan program for loan size above $3 billion- no maximum loan size. More individual and institutional investors twirl to the Fannie Mae DUS platform to finance the multi family class of assets than any other source. The DUS platform conveys industry low interest rates with customized terms and certainly of execution. Program allows for a definite tenant concentration up to 80% and above available through respective dedicated programs.

•Fannie Mae affordable housing loan program

The inexpensive housing loan program conveys permanent, long term fixed rate debt for financing or refinancing for stabilized multifamily housing properties with regulatory based rent or income restrictions.

•Fannie Mae student housing loan program

It grants customized apartment loans or multifamily lending for student housing properties that address the special needs financing of the student housing market through its dedicated student housing loan program for properties that are specifically built for student housing with a minimum of 80% of the units leased to under graduate or undergraduate students.

ALB Commercial Capital is one of the leading private investors that offer a competitive advantage with their competitive mortgage rates and pricing, flexible terms, customized solutions, streamlined origination and processing as well as quick closing capabilities.

Want a Fannie Mae Multifamily loan? Then Hurry up! Visit our official website and get every queries solved!

Written by: Published by: Albcommercialcapital on 26/02/2019

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!

Take Benefits of the Big Deal in 2018-2019! Fannie Mae Multifamily Lending Earnings Increase in Stable Market!

Small multifamily properties those with five to fifty units are getting more attention as an important source of affordable housing. Nationwide, it is estimated that there are over 315,000 properties with between five and fifty apartment rental units. However, about 17% of these properties are located in one place; Los Angeles County. The country comprises more than 4,000 square miles and includes the cities of Los Angeles and Long Beach, as well as areas that have widely varying income levels, such as Beverly Hills and Compton. With such a high concentration of properties, it is worth taking a closer look at the small multifamily segment in Los Angeles County.

The market cap report of the Fannie Mae multifamily lending is the evidence that more than 90% of financing directed to low-income housing. Good news as Fannie Mae reports slight increase in net income in Q2.

Rising Continues for Fannie Mae Multifamily Lending Market

Fannie Mae hot streak continues, net income increases slightly in Q3. Freddie Mac outstrips Fannie Mae multifamily lending growth by 19 percentage points. However, the third-quarter financial earning report declared by Fannie Mae on Friday, showing its multifamily sector posted solid gains over again.

The Fannie Mae multifamily lending net interest income is $549 million in Q3, up $45 million from the Q2 and up $58 million from the Q3 of 2017 – as per latest Fannie Mae announcement by Fannie Mae.

The increase was because of the rise in guarantee fee revenue as the multifamily guaranty book grew during the quarter. Thus, new Fannie Mae multifamily lending business volume increased to $18.2 billion in the Q3 of 2018, up from $14.5 billion in the Q2 this year. Fannie Mae multifamily lending’s business volume few a totals of $44 billion during the first nine months of 2014. Of this, about 42% counted toward the FHFA’s 2018 (Federal Housing Finance Agency) multifamily volume cap.

The FHFA’s scorecard put loan production caps on Fannie Mae and Freddie Mac’s multifamily business to further the goal of maintaining multifamily activities while not impeding on the participation of private capital. The cap set for both companies was $35 billion. However, the FHFA designed exclusions from the cap to support affordable and underserved multifamily segments of the Fannie Mae multifamily lending market, saying these segments are not being adequately served by the private sector. Exclusions include financing for subsidized affordable housing, manufactured housing communities and small multifamily properties, between five and 50 units.

Evidence to Increasing Earning Opportunity from Fannie Mae Multifamily Lending Program

Additional exclusions include financing for affordable properties in rural areas, energy efficiency improvements in Enterprise-financed properties, and market-rate units that are affordable to very low, low and moderate-income tenants in standard, high-cost and very-high cost rental markets.

Fannie Mae multifamily lending financing for a total of 206,000 multifamily units during the Q3 is the solid evidence that 90% of those were affordable for families earning at or below 120% of the area median income.

Earlier this week, the FHFA has already announced that, per its preliminary determination, Fannie Mae multifamily lending program has passed all five of its low-income housing goals of 2017 a long ago. And although the program has been focused on lending to low-income households, the Fannie Mae multifamily lending program’s serious delinquency rate improved in the Q3, dropping to 0.07% as of 30^th September’ 2018. This is down from 0.11% as of 31^st December’ 2017! The reason for this massive drop was due to mainly a decrease in delinquent loans subject to forbearance agreements granted to borrowers in the areas affected by the hurricanes in the latter part of 2017.

Overall, the Fannie Mae multifamily lending options have seen a comprehensive income of $4 billion in the Q3 of 2018 which was primarily driven by the business fundamentals.

Know more about Fannie Mae multifamily lending market and your ROI to consider by visiting ALB Commercial Capital online or by calling directly on 800-510-2214!

Access Higher Leverage from Best Rate Apartment Building Loans in Inland Empire

Long gone were the days of walking into a local bank to get a multifamily or commercial apartment building loans in Inland Empire. It’s not because bank can’t finance you, but because there are simply too many options. Commercial mortgage backed securities and non-resource financing are two different but the best apartment building loans program in Inland Empire for people those are seeking best rate apartment building loans and the list goes on.

Whether you are a new borrower or are looking to refinance an existing loan, it’s important that you partner with a lender like multifamily loans to get you the best leverage and financing terms available.

Understand What’s Expected of You as Borrower to Get the Best Apartment Building Loans Financing Terms Available

What we are ultimately looking for in a borrower is someone who has great experience, a net worth greater than requested apartment building loan amount, and liquidity greater than 10% of the loan amount post-closing (not including cash-out on refinances). Keep in mind that this requirement can be reduced for lower leverage apartment building loans in Inland Empire.

There are so many factors involved in choosing the apartment building loan in Inland Empire that’s just right, including things like terms, interest rates, amortization, and more. Most lenders have their own requirements and standard structures and that’s it; there’s very limited bending. This means that when dealing with a bank or a banker, or even your local mortgage broker, you have to make your deal fit into their niche instead of finding the lender that builds their business for opportunities just like yours. You are limiting your options to their strengths, instead of leveraging strengths of your apartment building loan opportunity with the appropriate lender in your niche. What one lender may call a one-off deal; another may call a perfect fit.

There’s no way for a apartment building loan borrower to have the same level of access to capital markets, and the same relationships, as the expert group of advisers at ALB Commercial Capital. It’s simply not feasible unless you have built a department that specializes in it, that has evolved along with the market, and that continues to research and evolve every day.

ALB Commercial Capital – The Best Choice for Apartment Building Loans in Inland Empire

Market fluctuates; capital ebbs and flows. Align yourself with a partner who understands the business inside and out, and wants to understand your deal and everything about it. Ready to get started? Get in touch with ALB CommercialCapital to get pre-approved for your apartment building loan in Inland Empire today!

Ultimate Guide to Getting Qualified for Apartment Loans in California

Buying apartment buildings is more involved than investing in single-family or small multi-unit properties. There are pros and cons to apartment building investments. Thus, investing in apartment buildings require a deeper level of understanding on financial and management aspects of real estate investment.

Steps to Getting Apartment Loans Financing

Analyze the Income of the Property:

You will need to have a current rent roll showing current property income and the past 12 trailing months’ income and expense statement. Subtract total expenses from income to determine the net operating income. Now you will need to know the apartment loan amount. If you have not spoken with a lender or mortgage broker yet estimate 75% of the value. Now take your annual net operating income and divide it by your estimated annual mortgage payments. This will give you a ratio called a debt service coverage ratio.

Analyze Market Rents:

The easiest way to do this is to find three to five apartment buildings in the same sub-market as the subject property. These need to be of similar age and quality as the subject property. You can find the websites for these and see what rents they are getting. Or you can talk to a multifamily property manager, or your commercial realtor. It is helpful to know market rents so you can determine if the rents of the subject are too low and have room for future increases. Also, if the rents of the subject property are the highest in the market this can cause you to get a lower than anticipated appraised value.

Estimate the Appraised Value:

First, determine the capitalization rate of the subject property. To do this take the annual net operating income of the property and divide this by the purchase price or the value that a real estate professions estimates. Find out what cap rates similar properties have sold for in the past year and use this cap rate to estimate the value of your property. Second, ask a real estate professional for help in researching similar properties that have sold within 5 miles of your property. Calculate the price per unit these for these properties and apply it to the number of units of your property. Again, you will need to find similar size and quality properties to yours for this to be accurate.

Apply for the Best Apartment Loan You Qualify For:

You can submit an apartment loan submission package to your top loan programs, or we can do this for you at ALB Commercial Capital. Your objective is to get a letter of interest from the lender that shows the apartment loan terms and pre-qualifies you for the loan amount. Be wary of lenders or brokers that charge upfront or due diligence fees. These programs are likely scams. You shouldn’t have to put money down on an apartment loan until you get a letter of interest, and the funds should go towards the third party reports or legal expenses that the lender actually incurs.

Things You Need to Know before Applying for the Apartment Loans

• Personal financial statement on all key principals including schedule of real estate owned 
• Current rent roll on the subject property
• Previous past two full years and past trailing 12 months income and expense statement
• Copy of your current three credit report. The lender might want to pull your credit but this         will likely lower your credit score especially if you are applying to multiple lenders
• Photos of the interior and exterior of the property
• A brief apartment loan summery selling the transaction
• Last two years tax returns and current business financials if you are self employed

    A superb lender can help you getting the best rate apartment loans that is rewarding and followed through a streamlined process. An inexperienced lender could cause your apartment loan process to be one that costs you financially, time wise and in number of headaches. Choosing ALB Commercial Capital can free you from many issues exist with an inexperienced lender. Get in touch today with ALB Commercial Capital to obtain flexible terms on best rate apartment loans.  

Freddie Mac Hybrid Small Apartment Loans Give Green Flag to Finance Multifamily Properties

One-third of all multifamily units are in small multifamily properties which are an important component of the affordable rental housing stock for low and moderate income individuals. Although many small multifamily properties receive some form of govt. subsidy, UN-subsidized units account for three-fourths of units with rents below $600.

Multifamily mortgage debt organization and investment is highly fragmented although a handful of institutions holds about one-third of outstanding multifamily debt, the remainder is held in portfolio by almost 6,000 Federal Deposit Insurance Corporation. Although secularization plays an important role in supporting multifamily finance, UN-secularized portfolio holdings remain a significant source of multifamily investment. Commercial multifamily mortgage secularization is slowly recovering, and life insurance companies play a measurable role as multifamily investors.

How Freddie Mac Hybrid Small Apartment Loans Set a Class for Finance?

Albeit small multifamily properties are commonly defined as those with five to 50 units, but Freddie Mac define small multifamily properties by loan size ranging from $1 million to $5 million. Smaller properties with two to four units are also an important source of affordable rental housing, loans for these smaller properties are originated using Freddie Mac hybrid small apartment loans’ guidelines.

In recent days, Freddie Mac hybrid small apartment loans have represented a limited segment of the total multifamily business activities. Though Freddie Mac is a government sponsored enterprise that provides a secondary finance market for residential mortgages, billions of dollars have been provided through Freddie Mac hybrid small apartment loans for multifamily financing.

Freddie Mac Hybrid Small Apartment Loans in Multifamily Housing Finance

As secondary market investors, the Freddie Mac hybrid small apartment loans provider’s role in providing liquidity to the multifamily market is an important one; however, they face a number of challenges in financing multifamily properties. These hurdles are particularly acute for small multifamily loans.

The characteristics of multifamily properties to qualify for Freddie Mac hybrid small apartment loans are to make financing more challenging. More than half of the small multifamily housing stock is more than 30 years old and tends to have higher maintenance costs than larger properties. Although vacancy rates for smaller properties are only marginally higher than those for properties with more than 50 units, losses due to vacancy are higher for smaller properties. To manage these concerns, adequate reserves to cover temporary liquidity problems and meet anticipated capital expenses are even more critical for smaller properties.

Although individual borrowers are important contributors in the small multifamily arena, they have unique characteristics that present challenges to financing. In small multifamily properties with less than 25 units, borrowers tend to be individual property investors or smaller commercial enterprises that invest in just few properties. Typically, the ownership structure in small properties with more than 25 units involve more formal legal arrangements such as limited liability partnerships, limited liability companies, or other types of corporate entities.

Individual multifamily borrowers operate on thinner cash flow margins that larger property owners, and are exposed to higher income fluctuation risk when vacancies occur. Many individual borrowers don’t have the resources to outsource the management of their properties; instead, they manage their properties themselves which can impact the maintenance of the units or the speed of filling vacancies.

Accessing the entire secondary market data is difficult for individual small multifamily borrowers who often lack the deep pockets to meet secondary market underwriting requirements for minimum net worth, liquidity reserves, or es crowed reserves for capital expenditures. In addition, individual borrowers may not have audited financial statements to meet reporting requirements.

Evaluating these multiple factors before applying for Freddie Mac hybrid small apartment loans not only adds to the complexity and cost of underwriting small-balance multifamily loans, but also limits the field of investors willing to purchase these loans. Due to a combination of unique factors that are typical of Freddie Mac hybrid small apartment loans, investors view the market as highly heterogeneous. In every loan transaction, all of the distinctive characteristics of both the property and the borrower must be considered. In many circumstances, these characteristics render a loan to a particular borrower, or on a small multifamily property, ineligible for purchase by the government sponsored enterprises.

Need immediate assistance to qualify for Freddie Mac hybrid small apartment loans? Get in touch with qualified loan advisers at ALB Commercial Capital waiting eagerly to respond to your calls.

When the Apartment Building Loans Refinancing Is Considered a Praiseworthy Investment?

If your new interest rate will be at least one point lower, you get eligible to refinance your apartment building loan. That may have been true years ago, but with the fact that refinancing has been costing less recently; it is a good time to think about new apartment building loans. Refinancing your apartment building loans has a variety of advantages that often make it a praiseworthy initial spending many times over. Make sure you consider any pending balloon payments and of course existing prepayment penalties on your present apartment building loans.

Advantages of Refinancing Apartment Building Loans

When you refinance apartment building loans, you could have the ability to lower your interest rate and monthly payment; sometimes by a lot. You might also have the ability to cash out a portion of the built-up equity in your commercial property which you may use to consolidate debts, improve your property, or acquire more. With reduced interest rates, you might also be able to build your equity more quickly by switching to short-term apartment building loans.

apartment building loans

                                          

                                                          

How Much You Need to Spend While Refinancing Apartment Building Loans?

All of the advantages of refinancing apartment building loans do come with some expense. You will be charged the same sort of expenses and fees you did with your present apartment building loans. Among these may be settlement costs, an appraisal, lender’s title insurance, and underwriting fees and so on.

Calculating the Refinancing Option for Apartment Building Loans

You might investigate paying points to reduce your interest rate. Consult with a tax professional before acting on word of mouth that the points paid may be deducted on your taxes. Another thing about taxes is that if your interest rate is lowered, naturally you will also be reducing the paid interest amount that you’ll be able to deduct from your federal income taxes. This is one more cost that some borrowers take into consideration.

Most of the apartment building loan borrowers find that the savings per month balance out the initial cost of refinancing apartment building loans. Thus, here at ALB Commercial Capital, we give professional assistance to figure out what your options for refinancing apartment building loans are by considering the effect of refinance on your taxes that you may like to sell in the coming days and your money on hand.

Get in touch with the expert apartment building loan advisers at ALB Commercial Capital to help you refinance without any hassle

Purchasing or Refinancing a Multifamily Property? Check Out How Apartment Loans Help Financing an Apartment Building

Before exploring the financing options, let’s have a look at what’s count as an apartment building. Apartment building generally contains 5-7 units and each of them should have a kitchen, bathroom, and a sleeping/living area for sure. What does the ideal investor look like for an apartment building of 5+ units? 

The ideal investor should have enough cash or assets to put down 20-25% of the purchase price and at least another 10% of the total loan amount in assets or cash. If you are looking to buy an apartment building for the first time and you are planning to use hard money, equity or mezzanine debt, the deal might be too big for you. Instead of that going with a flexible apartment loan program is a way better choice. 

Understand What is Expected from You as Borrower to Get the Best Financing Terms

The days of walking into your local bank to get a military or commercial property loan are over. Not because the bank can’t finance them for you, but because there are simply too much options. Today privately handled and government backed agencies like Fannie Mae and Freddie Mac are offering non-recourse apartment loans with 10year of fixed-rate loans at nearly 4% to qualified borrowers. Whether you are a new borrower or are looking to refinance an existing loan, it’s important that you partner with a lender like ALB Commercial Capital to get you the best leverage and financing terms available.

Below is the standard documentation that you need to submit to obtain the most accurate quote whether you will be purchasing or refinancing a multifamily property.

Property Information:

•          Last year’s P&L
•          Trailing 12 month, Month-by-month P&L
•           Current rent roll
•          Stabilized and/or proper
•          Stabilizes budget/Pro Forma
•          Summary of Cap Ex (capital expenditure) to date
•          Property photos, address, description, unit-mix, age etc

Borrower Information:

•         Name of entity
•         Personal financial statement for each guarantor
•         Resume/Bio for each guarantor
•          Property management company info if not self-managed

If you are refinancing or financing an apartment building, we may also need some additional information including when you bought the property, how much you bought it for, how much you put down, your current loan terms, and the current occupancy. To get a better idea of the apartment loans’ process, check the details below: 

•          Apartment loan amount can gain maximum proceeds subject to the lesser of an 80% LTV and a DSCR no less than 1.25
•        10 years fixed
•          30 year amortization
•          4.3%-4.9% interest rate
•         9.5 years yield maintenance
•          Assumable for 1% fee
•          Non-recourse
•          About $15k application fee for third party reports with unused funds applied towards closing costs.
•          Refundable Good faith deposit of 2% at time of commitment and rate lack refunded about 30 days after closing

Although bank prescribed apartment loans cost more to originate than private agencies, however, in the end they offer better long term financing, interest rate risk protection and of course leverage. Are you ready to get started? Connect with one of the finest team of experienced apartment loan advisors at ALB Commercial Capital to explore your options for best rate apartment loans!