Apartment loan rates are currently at historic lows, making it an ideal time to purchase a multifamily property. Whether you’re looking for a Fannie Mae multifamily small loans, Freddie Mac Optigo loans or HUD 221(d)(4) loans, there are plenty of options available to you. 휴대폰소액결제현금화
These non-recourse loan programs have the lowest rates in America and offer long-term fixed rate terms and fully amortizing loan periods. They also offer diversified rental income from multiple tenants, which reduces your dependency on any single tenant.
Fannie Mae
The Federal National Mortgage Association (Fannie Mae) is a government-sponsored enterprise that maintains liquidity in the mortgage market by buying loans from banks and other lenders. It is the largest backer of 30-year fixed-rate mortgages in the United States. It also offers other loan programs, including counseling networks and the HomePath real-estate website.
Fannie Mae multifamily loan rates have been updated to provide more flexible financing for affordable housing investors and developers. These changes were made to the Property Eligibility Matrix and the Maximum LTV Allowance. This allows borrowers to finance up to 95% of the property’s value and requires less cash on hand at closing.
Additionally, Fannie Mae has expanded its portfolio of multifamily loan options to include the Affordable ARM 7-6 and the Affordable Structured ARM. These new loans offer a range of financing options, including a high maximum LTV allowance for affordable property investors/developers and a low minimum credit score requirement. Both ARMs also have a low prepayment penalty and DSCR requirements.
Freddie Mac
Freddie Mac is a government-sponsored enterprise that helps maintain a robust housing market. They buy mortgage loans from lenders, and then use them to provide financing for more homebuyers. This creates a healthy ecosystem that benefits all parties.
Whether you are investing in a market rate property or an affordable housing project, Freddie Mac has multifamily loans to meet your needs. They offer a variety of competitive pricing options, flexible financing terms, and certainty of execution. These loans can be used to purchase, refinance, or preserve a multifamily property.
Freddie Mac also offers an environmentally focused program called the Green Advantage. This is available to investors who invest in Manufactured Housing Communities (MHCs). The program enables them to receive higher LTV values and DSCR ratios, and it can be used with both conventional and affordable multifamily properties. It is also non-recourse.
HUD
HUD is an executive department of the federal government tasked with improving access to housing. It provides mortgage insurance to help people buy homes who wouldn’t normally qualify for a loan, and operates programs that offer subsidies for apartment investors who rent to low-income residents. It also helps people with disabilities purchase apartments.
HUD’s multifamily loans are among the most competitive financing options for investors, and their terms are comparable to Fannie Mae and Freddie Mac’s. They’re available for market-rate and affordable housing properties and offer 35-year, fully amortizing terms. In addition, they’re non-recourse and assumable.
In 2021, HUD cleared its backlog of FHA-insured multifamily loans, meaning that investors can now close on these projects in a fraction of the time it used to take. This is a major improvement for the industry.
Banks
For eight to 10 years, apartment loan financing has been relatively inexpensive, thanks to the Federal Reserve keeping overnight lending rates low. This has allowed investors to acquire cash-flowing assets with positive leverage, and new development to occur as strong demand fundamentals have outweighed the oversupply in many markets.
Now, as interest rates have been rising, investment economics are harder to pencil and the risk-reward profile of acquiring existing cash-flowing apartment loans has been deteriorating significantly. This is particularly true in the largest markets, where regional banks have been a significant source of apartment financing.
The recent failures of Silicon Valley Bank and Signature Bank, two of the larger lenders in New York City, have been shaking up the commercial real estate world. Whether these bank failures will be felt in the multifamily sector remains to be seen, but it is a concern for many apartment executives. The next few months will be critical for the survival of some of the nation’s largest regional lenders.