Apartment Loans

Financing instruments that are used by investors and property management firms for the purchase apartment dwellings are typically referred to as apartment or multi-family dwelling loans.  The rent money that tenants pay the landlord or property management firm goes toward paying down the loan and generating revenues for the management firm or the investors involved.  This is also one of the more popular commercial property loans that Biz4loans can assist you with.

Although the process for acquiring apartment loans is relatively simple, there are usually three factors involved in the process.  You need to have an acceptable credit history, a business plan, and a downpayment.  It is also important that you understand the difference between apartment loans and mortgages.  Apartment loans are used to purchase multi-family units or a specific unit within a larger structure whereas mortgages are typically used in the purchase of buildings and land parcels.

 Types of Apartment Loans

 Whether you are a current apartment complex owner, an investor, or a property managing firm, Biz4loans can assist you with getting a loan that facilitates your financing needs.  The following loan programs are now available.

 Apartment & Multi Family Loan Program

  •  Appraisal – Limited Needed
  • Debt Service Coverage Ratio (DSR) – 1.25:1
  • Loan size – $500,000 to $5 Million
  • Loan-to-Value ratio – 80% to 85%
  • Occupancy requirement – 90%
  • Property requirements – minimum of 5 individual units (A, B, & C)
  • Terms – 3, 5, 7, 10 and 15 Years

Large Balance Apartment Loan

 Biz4loans can assist with providing customized and innovative conventional market rate loans for apartment properties.  Options include 5-30 year fixed terms, balloon or non-balloon terms, flexible prepayment options, and risk base pricing.

  •  Debt Service Coverage Ratio (DSR) – 1.25:1
  • Loan Size – $5 million plus
  • Loan-to-Value ratio – 80%
  • Occupancy requirement – 90%
  • Property requirements – single or multi-asset based
  • Terms – 5, 7, 10, 20, 25, and 30 Years

 Agency – Series of Multi Family Loan Program Options

 This apartment loans program provides borrowers with flexibility by combining a 5 to 13- year fixed rate with no prepayment penalties.

 DMBS Large Balance Apartment Loan Program

The Discount Mortgage-Backed Security (DMBS) Program uses term-discount securities for funding an acquisition or refinancing mortgages that apply to multifamily, seniors and student trusting properties.

  •  Appraisal – required
  • Loan size – $25 million plus
  • Loan-to-Value ratio – 70% to 80%
  • Occupancy requirement – 75% to 80%
  • Property requirements – multifamily / single asset-based
  • Terms – 5, 7, and 10 years

The DMBS Program funds mortgages using short-term discount securities with interest rates that are significantly lower than other loan programs.  Discount Mortgage-Backed Securities are non-interest bearing that is sold at a discount and have a 3-month repayment term.

 Remember, at Biz4loans, we represent our clients – not our lenders.

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Loans  Provided