Large Banks vs Small banks vs Credit Unions

[Farris Roach III]

Good Afternoon BP! This is Farris from Columbus Oh. My partners and I are zeroing in on our first multi family unit. We are in search for financing with the best terms. I'm sure this question may have been addressed, but I was hoping for local clarification. I have accounts with a large bank and a credit union personally but not for business. My question is, who would give us the best chance/rate for a new project? Columbus market is booming and I want to get the best chance to get going with minimal headaches. Thank you in advance for your response.

[Kevin Romines]

As @Brian Garrett mentioned Fannie Mae will be your best rates on 1-4 units. FHA is only an option for an owner occupied 1-4 unit property. If you are talking about large multi of 5 units or more and a million dollar loan amount or more, then your best bet is a mortgage banker / broker that does Freddie Mac or Fannie Mae small balance commercial or multi financing. You can get low fixed rates for 20-30 years terms and it will be non-recourse.

If the loan amount for the 5 units and more will be less than 1 million then your local credit union would be the 1st stop I would make, followed closely by local community banks.