I have an unique deal in the works. Its for a total of 21 units but it consists of 4- 4 unit buildings and 1-5 unit building. They are all consecutive but have separate tax parcels.
My question is has anyone dealt with the Fannie Mae Multifamily small loan program and one step deeper the fannie mae scattered sites?
The reason I ask is because in this program it says you can get a loan ranging from $750,000.00-$5,000,000.00 non recourse ranging from 5-15 year fixed amortized over 30 years. It seems like a much better deal than conventional lending if you and the building qualify.
I have not done any multifamily investing, but I have looked into quite a bit over the past few years and I have seen some great loan programs like that to where it almost does look better than conventional financing.
I've heard some multifamily investors quote some of their terms on various podcasts and I would have to say that there are programs out there with some tremendous terms and I believe fannie mae is one.
What I think I have also heard is that there are a lot more hoops to go through to get those loans. But if you do, they're like gold. And the numbers are a huge boost to your return. Curious to see some multifamily investors weigh in to see what their take is on some of these loan programs. And how tough it is to get to closing with them.
Yeah I e spoken to a few lenders that I have cold called today. Fannie and Freddie won’t work in this situation because the loan amount is to small. Loan amount needs to be at minimum $750,000.00 the further I dive down this hole the more it seems like traditional 25% down will be mot only option with a 5 year arm.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing