Financing a multifamily property is one of the biggest decisions you’ll make as an investor. There are many different financing options available to you.
Whether you’re looking for a conventional mortgage loan, HUD or 후순위아파트담보대출 Freddie Mac financing, or even mezzanine financing, there are a number of different ways to finance your multifamily project.
Fannie Mae Conventional Multifamily Loan
Founded in 1938 as the Federal National Mortgage Association, Fannie Mae is one of the largest secondary market lenders for multifamily housing. It is a government-sponsored enterprise (GSE) with a congressional charter. Its mission to improve access to affordable home financing continues to this day through its efforts to reduce down payment requirements for multifamily loans. Fannie Mae does not originate mortgages; instead, it purchases them from mortgage lenders such as CrossCountry Mortgage and packages them into guaranteed investments called mortgage-backed securities (MBS), which are sold to investors.
The multifamily loans offered by Fannie Mae are collateralized by garden- and high-rise apartment complexes, seniors housing communities, cooperatives, dedicated student housing and manufactured housing communities. The loans are offered with a range of terms, amortization periods and LTV allowances based on property type. These loans are also non-recourse. Servicing a multifamily mortgage loan requires specialized expertise due to the complexity of the properties, borrowers and loans, which require more frequent collection and monitoring of information versus single-family mortgages.
Freddie Mac Non-LIHTC Forward Multifamily Loan
Freddie Mac offers an assortment of multifamily loan products and programs that can help you achieve your development goals. Whether you are looking for Conventional loans, Targeted Affordable Housing, Small Balance loans or Seniors housing, there is a financing solution that can fit your needs.
Designed for investors who do not utilize 4% Low Income Housing Tax Credits (LIHTC), the Freddie Mac Non-LIHTC Forward Multifamily Loan allows you to finance new construction and substantial rehabilitation projects with terms up to 30 years, LTV allowances up to 80% and DSCRs as low as 1.25x.
As the #3 Freddie Mac OptigoSM lender in 2022, Walker & Dunlop offers the full range of Freddie Mac multifamily lending options including Green Advantage loans for new construction and existing properties that are certified energy efficient. We can also assist with Freddie Mac loan execution that is streamlined with one Physical Risk Report and eliminates the need for zoning reports, engineering studies and special purpose entities.
FHA Owner-Occupied Multifamily Loan up to 4 Units
FHA insures mortgages for dwellings with up to four units, but only if the owner lives in one of them. The occupant requirement prevents investors from using the FHA multifamily loan to buy property that they will rent out to others.
The new policy also removes the FHA self-sufficiency test for 2-4 unit properties, making it easier for borrowers to qualify for FHA loans for multifamily homes. This may help first-time buyers looking to offset high interest rates and afford their dream investment home.
Like conventional mortgages, a FHA loan requires a credit score of at least 580 and a down payment of 3.5% or more. It’s important to consider the pros and cons of buying a 2-4 unit property, especially as a first-time investor, before pursuing this route. Be sure to talk to your Rocket Mortgage expert about the different options available to you. They can provide you with detailed information about rates, payments and closing costs so that you can make the best decision based on your personal goals.
FHA Streamline Refinance
The FHA Streamline Refinance allows investors to refinance an existing FHA mortgage into a new, lower rate and monthly payment. Refinance rates are competitive with other refinance options, and there are no limits on how much the mortgage can be reduced.
The streamlined process makes it possible to save money without having to go through the full documentation and home appraisal requirements of traditional refinance options. If the lender agrees, some borrowers may not even have to verify their income or credit.
To qualify, at least six months must have passed since the first due date of the mortgage you’d like to refinance and no more than one 30-day late payment during the previous year. Additionally, the mortgage you’re refinancing must be an FHA-insured loan. You can use an online mortgage calculator to see how a lower rate and shorter term would impact your monthly payments.