Rental Property Investor · North Little Rock, AR · Member since 2016 · 82 posts · 19 votes
The best loan terms I've found so far are a 5 year balloon 20 years amortization, 5.75%.
Is their any other loan structure for 10-30 unit complexes that are better than the one above or is this typical for commercial loans?
Unfortunately, our loan price doesn't meet the requirement for Fannie/Freddie. I'm told it needs to be above at least a $2M price in order to get them involved.
Bedford, NH · Member since 2018 · 77 posts · 49 votes
8y
HUD 223(f) can do 85% LTV (minimum), 35 year fixed rate, non-recourse, but there are more soft costs involved and timing is longer than Freddie SBL or a bank. If you have something in the 30 unit range or around ~$1.5mm+, it's worth running an analysis. Smaller than that it's probably not going to be cost effective.
Like Hadar said, if HUD or Freddie/Fannie are not feasible, leveraging local banks in your area can be surprisingly effective. Some aggressive banks around here are offering 10 year fixed.
Investor · Beaumont, TX · Member since 2016 · 171 posts · 277 votes
8y
A local credit union quoted me
20% down, 5.75%, 25 yr AM with 15 year balloon but 5 year ARM for a 14 unit I have under LOI.
Seems to be the most competitive offer I have so far in terms of financing
@Cody Dover that is not accurate. Freddie and Fannie both have Small loan programs. Up to 80% ltv depending on the market, 30 year am, potentially an I/o component again depending on the deal. Prepay ranges from yield maintenance to step down to flex step down. Feel free to pm with questions. I know the agency products very well.