Commercial Financing For Small Multi-Family

[Brandon Sexton]

I have been trying to find a conventional mortgage option for the purchase of a multifamily property of 5-10

Units with a purchase price of $300,000-$500,000. The property would be located in the Des Moines, Iowa area. I've reached out to many banks but it seems difficult to find a lender willing to do this type of loan. The banks I have identified offer 5 year fixed rates with 25 year amortization at 5-6% and 30 year fixed at 6.75-8% with the purchase of discount points. All loan options have been offered at 75-80% LTV. Are there any banks that people have had good luck with that offer good rates on this type of loan?

Thank you!

[Mary M.]

I would suggest finding a commercial loan broker and seeing what they can offer you. 

Not sure about under 1million, but the rate sheets i rec’d this week all have rates high 3’s to low 5s