What are the Best Current Rates/Lenders for 6+unit Multifamily?

[William Coet]

Hello,

Trying to get an idea of the best sources (lenders) for lowest origination fees and lowest APR for fixed rate loans on 6+ unit multifamily.

Thanks!

[William Coet]

Quote from @Ko Kashiwagi:

Hi William,

Are you talking about a short-term or a 30 year? If the loan amount is less than 500k, there is a lot less lenders that can do these types of loans compared to 1-4 or 10+ units and rates tends to be higher. For 30 year fixed loans, the rates will vary by the NOI and LTV - if you go 60% LTV you could be possibly be in the 5-7's. If you go 75% LTV you could be 8-9's. There's a lot of missing pieces here.

 Ko,

Ideally 30 yr.  80% LTV.

[Andy Chen]

sorry, I can’t seem to delete my post.

[Ko Kashiwagi]

Hi William,

Are you talking about a short-term or a 30 year? If the loan amount is less than 500k, there is a lot less lenders that can do these types of loans compared to 1-4 or 10+ units and rates tends to be higher. For 30 year fixed loans, the rates will vary by the NOI and LTV - if you go 60% LTV you could be possibly be in the 5-7's. If you go 75% LTV you could be 8-9's. There's a lot of missing pieces here.

[William Coet]

Quote from @Ko Kashiwagi:

Hi William,

Are you talking about a short-term or a 30 year? If the loan amount is less than 500k, there is a lot less lenders that can do these types of loans compared to 1-4 or 10+ units and rates tends to be higher. For 30 year fixed loans, the rates will vary by the NOI and LTV - if you go 60% LTV you could be possibly be in the 5-7's. If you go 75% LTV you could be 8-9's. There's a lot of missing pieces here.

 Ko,

Ideally 30 yr.  80% LTV.

[Alecia Loveless]

@William Coet Look into Brandon Turners new lending site betterlife/ref.com. I was just quoted either 7.0 or 7.625 on a DSCR loan which likely will have higher rates than a regular commercial loan.

The difference in the two rates was whether the property would be considered urban or rural. The rural one required 35% down. But if you’re urban they do 20% all day long I believe.

[Percy N.]

Recourse or non-recourse? 

What is your level or experience?

I would approach local banks and credit unions first.

[Robin Simon]

Quote from @Alecia Loveless:

@William Coet Look into Brandon Turners new lending site betterlife/ref.com. I was just quoted either 7.0 or 7.625 on a DSCR loan which likely will have higher rates than a regular commercial loan.

The difference in the two rates was whether the property would be considered urban or rural. The rural one required 35% down. But if you’re urban they do 20% all day long I believe.

 Rural is definitely going to be a challenge - its also trickier for Multifamily because unlike residential (1-4) appraisals, theres no "box to check" to determine Rural vs. Suburban vs. Urban - even more "grey area"

[William Coet]

This is considered urban.  Recourse is fine.  (although NY is a non-recourse state it may not apply to multifamily). 

[Brandon Croucier]

My team is beating most of my competitors on 5+ units in this market, would love to get you on a call and see how we can assist you!

[Rich Davis]

As this is commercial, 30yr amortization is likely out of the question.  Most lenders will offer two options:

1: 20% down and 20 yr amortization and 10 yr term.

2. 25% down and 25 yr amortization and 10 year term.

Rates will vary by region, lender, and relationship with your lender.  That said, right now, I see 7.75%.

Good luck.