Good Afternoon BP! This is Farris from Columbus Oh. My partners and I are zeroing in on our first multi family unit. We are in search for financing with the best terms. I'm sure this question may have been addressed, but I was hoping for local clarification. I have accounts with a large bank and a credit union personally but not for business. My question is, who would give us the best chance/rate for a new project? Columbus market is booming and I want to get the best chance to get going with minimal headaches. Thank you in advance for your response.

Your best financing terms and rates will be either FHA or 30 year fixed conventional through Fannie/Freddie.

As @Brian Garrett mentioned Fannie Mae will be your best rates on 1-4 units. FHA is only an option for an owner occupied 1-4 unit property. If you are talking about large multi of 5 units or more and a million dollar loan amount or more, then your best bet is a mortgage banker / broker that does Freddie Mac or Fannie Mae small balance commercial or multi financing. You can get low fixed rates for 20-30 years terms and it will be non-recourse.

If the loan amount for the 5 units and more will be less than 1 million then your local credit union would be the 1st stop I would make, followed closely by local community banks. 

Farris,

Are you targeting turn-key properties or will they require rehab?

@Bob Green Honestly, I am more so looking at them key but not against doing hard work in rehabbing. whatever makes the most sense financially is the way I will always lean.

@Farris If you want to grow faster and recycle your down payment funds from project to project, I suggest acquiring foreclosed properties, rehabbing and renting out. You can use portfolio lending to refinance every 90 days or so and cash out original down payment funds to use toward the next project. I've been using this strategy for years.