Financing Apartment (10+ units)

[Derek Meyer]

I’m doing research into larger properties. I’m trying to find a good resource to see typical financing options for a larger complex ($1m or more) versus a single family or duplex ($300k in my area).

Are these typically a 20% down payment with payments on a 30 year schedule, or is it more common to find loan that is interest only for x years with a balloon payment at the end?

[Kevin Romines]

If you have loan amounts of 1 million or more, this plays right into Fannie Mae or Freddie Mac's wheelhouse. They own that market of 1 million or more on the loan amount for multi-family. They can go to 80% so 20% down at rates in the 4s on 30 year terms. You wont find any better financing than that for these types of properties. 

The property will need to be in good condition and fully stabilized, meaning 85-90% occupancy. If they need updating or rehab, you will need to take them down with a different lender to get all that done, before you refinance them into Fannie Freddie. The other lenders will want 25-30% down. 

I hope this helps?