First time apartment bldg

[Kevin R.]

Hello Bigger Pockets community. I am reaching out for any suggestions as to the best way to qualify for  a commercial loan.  I am transitioning from single family homes and duplexes to larger multifamily properties.  Thanks!

[Tj Hines]

@Kevin R., it really all depends on the lender and what type of financing you're seeking.

If you're dealing with smaller multis where the loan balance is under a $1M more than likely you would have to consult with local community saving and loan banks. These type of loans are usually full recourse. You will need to have a networth of whatever the loan balance amount is as well as 10% post liquidity. You may have to bring anywhere from 20-40% down as the DP.

If the loan balance is $1M and over you can qualify for Non-recourse financing through Freddie Mac and Fannie Mae. CMBS also are great loan products for non-recourse financing.