Multifamily Mortgage

Article From the Mortgage Bankers Association: Multifamily Building Loans

As the credit crisis continues to take its toll on the general commercial finance industry, multifamily mortgages have faired relatively well.  Sectors such as construction, conventional, other investment properties and entire regions such as the Midwest are "out" until further notice.  Namely when the commercial secondary market comes back.    

Multifamily mortgage are "holding their own" because they are backed by Fannie Mae and Freddie Mac.  Funding banks and lenders are confident that these institutions will continue to buy the multifamily loans that they originate and fund.   In other words the lending "chain" is still in place, unlike most other sectors of the business.   

Multi Family Mortgages  

It's not all rosie however.  Underwriting standards have tightened across the board.  And borrowers with weak credit, less than 2 or 3 years of experience and low liquidity will be out of luck.  Multifamily construction is reserved for the strongest of borrowers with substantial experience and post close liquidity.  

For typical purchase or refinance transaction the property has to be stabilized, with high levels of occupancy.  The good news here is many multifamily properties are being priced substantially lower than what they where just one year ago.  Cap rates are just being raised.  Also, more good news is that interest rates within the multifamily sector are low, and long term fixed rates are still available.  5, 7, and 10 year fixed are very much an option.      

Contact us today regarding you Multfamily Mortgage.  Fill out our pre approval form now for thoughtful, meaningful answers.  The more info you provide the better the answers.