Multi-Family Finance Options for Military Veterans:
Hello everyone, as a US Veteran I thought it would be a good idea to touch upon the financing options for other members in this MF group who may also be fellow veterans.
VA residential home loan:
Any traditional lender has a VA home loan program for qualifying veterans to purchase a SF-4plex units. Loan is a 0% down 3.5% fix rate 30yr loan with maximum spending limits of $636k in high income markets but $424k in most markets. If used for multifamily units, you must intend to live in one of the units for atleast 1 year. The strict requirements consist of a credit score minimum of 620, 1yr reserve of mortgage payments, and property must be in habitable condition.
Commercial Loans for Veterans
The 504 is a commercial real estate loan primarily designed for business expansion and it is the best commercial loan if you are a veteran, you already own a business and you need to do one of the following:
Purchase real estate that will house your business. Expand, remodel, renovate or retrofit an existing facility. Install Green or Renewable Energy Equipment as part of a renovation. Purchase expensive business equipment with a useful life of at least 10 years. Refinance an existing commercial loan as part of a business expansion. You may need to explain to the loan officer that real estate investing and property management is your desired business model, or that you are willing to retrofit existing apartment buildings with Green Building projects.
Closing and soft costs can be financed making 90% loan to cost commercial financing possible. It offers long term, fully amortized loans with no calls, balloons, re-qualifying or refinancing required. It allows a 10% down payment/equity injection at a time when many commercial lenders require 30% down.You can finance manufacturing or Green Building projects up to $12,000,000. Property must have a $100,000k ROI so you'll need alot of doors.
If you or anyone you know are US Veterans and have any questions please feel free to ask them here.