We make multi-family property
Multi-family property financing, also known as apartment property financing, is an excellent strategy for brokers to expand their business offering and client base.
To qualify as a multi-family investment property, the building must have five or more dwellings (apartments), whereas buildings with four or less units are still classified as residential 1-4 investment properties.
To real estate investors, a multi-family apartment building is a solid real estate investment strategy for generating revenue since its cash flow is significantly higher than a single-family property and its operating cost is less influenced by any single vacancy.
While a larger multi-family property lowers the risk for investors, it's important for brokers to communicate that lenders typically assign a higher risk profile to multi-family buildings since they are harder to liquidate than smaller residential investment properties.
Lenders often use a lower LTV in multi-family property financing programs to offset the increased risk, so your borrower may need to provide a larger downpayment.
Flexible Solutions for Multi-Family Property Financing
Our common-sense approach to multi-family property financing allows us to offer flexible loan options to meet the unique needs of investors.
If you have investors interested in multi-family property financing for an apartment building with five or more units, our asset-based mortgage programs can help you meet the needs of self-employed borrowers who often invest in multi-family buildings and write off their expenses against income. While this is a wise tax-saving strategy for real estate investors, it reduces the borrower's personal income and may make it difficult to qualify them for a traditional mortgage loan.
Asset-based investment property mortgage programs are an excellent alternative because they focus on the value of the property and its revenue-generating potential, thus eliminating the personal income reporting requirements of traditional loans.
Our FlexPerm loan is great option for multi-family property investors since it offers:
- A simple financing solution on a purchase or cash-out refinance.
- A 3-year or 8-year fixed term amortized over 30 years.
- The flexibility to remain in the loan for up to 30 years with no balloon payment.
- Lower monthly payments than a hard money loan.
Start closing rental property loans today.
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