All Forum Posts by: James Eng

@John Hixon 

Are you looking to acquire multifamily properties here in DFW?  Instead of relying on a data provider you might consider building a network of listing agents that can feed you deals.  Another option is to build relationships with banks or mortgage brokers who have a pulse on the market to find deals.

Veena,

Here are the answers to your questions about Fannie and Freddie multifamily loans:

1 )Do you need to put a certain percentage down?

They have tiered pricing depending on the down payment. The minimum down payment is 20%. They will loan up to 80% LTV as long as the debt service coverage is 1.25x

2) Do you get loan-to-value or a loan to cost?

They will do Loan to Cost, but typically only up to $5,000/unit in rehab dollars into the loan. Above that you will have to go to a local/regional bank to get more rehab dollars.

3) What is the minimum income requirement?

They will be looking for the property to service the debt not you personally. However, they will look for your net worth to be equal to the loan amount and for you to have at least 10% of the loan amount in post close liquidity.

4 )I know that they are nonrecourse loans, but I can't seem to find any clear definition of what guidelines are necessary to qualify.

The loans are non-recourse, but you typically need at least 2 years of multifamily experience to get these loans or have a partner sign with you that has Fannie or Freddie experience.