Fix rate financing for apartment buildings

[Deepak Sharma]

Hi,

I am hearing lot of discussion on commercial loans being available for fix rate for 15 years or longer term. Currently we own Duplexes to 14 unit apartment buildings. Most of our loans are for about 5 year term and 15-25 year amortization. Does anyone have some info for loans of 300k-1.5 M range available for fix rate 15-30 year. I have tried couple of companies and all end up saying that it is easy to get them for single family but not for apartments. 

We are working on closing our next deal, it will help if we can finance it at fix rate.

Thanks,

[Steve Morris]

"Does anyone have some info for loans of 300k-1.5 M range available for fix rate 15-30 year. I have tried couple of companies and all end up saying that it is easy to get them for single family but not for apartments."

Well, I broker apartments and just closed on an agency (FMAC) loan OK.  7 year balloon with 30 year amort.

I will say that when it comes to underwriting banks are getting a lot pickier even while rates (3%) are low:

1) Want income & expense every month during sales process

2) Want rent roll every month and god help you if vacancies > 5%

3) Underwrite for increased reserve amounts

Having said that, I'd look for a COMMERCIAL (NOT SFR) loan broker. A good one helps immensely, explains the process and can get you the best rate.