Multi-family Properties (5+ units)

The Multi-family housing market is competitive, not only from a cost of acquisition perspective, but also the cost and structuring of financing options that are available.

While rate and term are important, you must consider other important components:

How long do you plan on holding the property?

• How much of a loan will the property support based upon its current income? While lenders will allow LTV's up to 80%, the actual loan amount will be determined based upon the current property income and expenses.  Visit our "Max Loan Estimator" page to see specifics and use our Max Loan Estimator Tool to determine how much a specific property may qualify for.
  

• Most Multi-family commercial loans have pre-payment penalties that range from 2-10 years depending on the length of the fixed rate term.
  

• Pre-payment Penalties range from a simple percentage of the amount being pre-paid that declines over a period of years to "Yield Maintenance" and "Defeasance".

Pricing

• Competitive with market. Will vary by loan size, fixed rate term and pre-payment penalty selected.
  
• Pre-payment Penalties - Almost always, usually relates directly to the term of the fixed rate period of the loan.  Pre-payment penalty may vary greatly based on the size of the loan and the rate quoted.  For more information about forms of pre-payment penalties click here.

Loan-to-Value "LTV"

• 80% for purchases / 75% for refinances (*based on Debt Service Coverage)