Apartment Loans


FastCommercialLoans.net offers an excellent opportunity to analyze cost savings on commercial apartment lending programs from $100,000 to $100 million and up.

These programs are part of a very competitive sector of the commercial mortgage lending market. Lenders want your business and are willing to compete on multi family units and apartment loans for financing. Maximum Financial Inc. creates a competitive environment by shopping your request for financing multifamily unit apartment loans to a wide variety of  competitive lenders. You will know the benefit of our unequaled efficiency and service with a great program and with low fees.

Apartment loans are available for multi-family properties 5 units and above. Maximum Financial Inc. provides competitive programs for commercial real estate ranging from $100,000 to $50 million.

Typical Terms Offered

Note: They represent typical terms that we normally see in the market and are not to be relied upon as a commitment to provide specific terms for specific transactions.

Maximum LTV:

Programs provide financing usually at 80% of value or cost (whichever is lower).
For amounts under $2M, there are a few lenders that will go to 85% or 90% or will allow secondary financing for a combined LTV of 85% to 90%.

Please Note: Most programs allow for the seller to carry back a 2nd mortgage behind a new first mortgage with as little as 10% (less sometimes) down.

Debt Service Coverage:  The cash flow from operations must be at least 1.00 to 1.20 times the mortgage payment.

Term: 3, 5, 7, 10, 15, 20 ,25 and 30 year terms are most common. Interest only and balloon notes are available.

Rates on Average:

  • 10 year fixed = 10 yr US Treasury bill rate + 1.0% to 1.5%
  • 15 and 20 year fixed = 10 yr Treasury + 1.5% to 2.0%>
  • 5 year fixed = 5 yr Treasury + 1.0% to 2.0%
  • ARM = LIBOR + 1.5% to 2.0%
  • Call for many more terms available.

Prepayment Penalties:

  • 10, 15, 20 year fixed rates - typically have prepayment based on "yield maintenance" or "defeasance".
  • 3 and 5 yr fixed rate - typically have a decreasing prepayment each year (e.g. 5%, 4%, 3%, 2%, 1%).
  • Adjustable rate mortgages- typically have a declining and smaller prepay penalty (e.g. 3%, 2%, 1%).

Recourse: Commercial programs  may or may not require recourse (personally guarantee). Case by case.

Closing Costs:

Borrowers are responsible for all due diligence and closings costs (e.g. Appraisal, Phase 1 Environmental, site inspection, title, etc)
  • Under $3M - costs range from $3,000 to $12,000
  • Over $3M - costs can be $12,000 to $20,000 or more.

   
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