My name is Stephen Sobin and my company Select Commercial Funding LLC provides apartment building mortgages (5+ units) from $500,000 - $10,000,000+.
With this blog post, I will try to help people understand what is needed to secure financing of a multi-family property. I have over 25 years of experience working with banks, insurance companies, agency lenders, pension funds, REIT’s, credit unions and government lenders. I know what these financial institutions are looking for when it comes to underwriting apartment mortgage loans.
In today’s economy, many people are looking at real estate investment as a means to supplement their income. Apartment buildings have traditionally been of great interest to first-time investors. Before you dream of becoming the next Donald Trump, you might want to know what today’s lenders expect. I think most of us are aware that the landscape of real estate mortgage lending has tightened dramatically due to the current economic conditions and the bank crisis which we just encountered. The good news is that there are many lending institutions actively lending (although on a more conservative basis) on good quality deals. Lenders are no longer willing or able to offer 100% financing and make speculative loans. Today’s lenders will look at the quality of the building being purchased, occupancy/vacancy rates, and cash-flow being generated. Lenders will also look at the individual borrower’s total net worth, liquidity, down payment, credit score, and management experience with similar properties. To start with, a borrower should have a minimum of 20-25% as a down payment, or equity, in the case of a refinance.
There are many other factors that lenders will consider. If you would like more information on today’s underwriting guidelines, please visit my website at www.selectcommercial.com and download my "Free Borrower’s Guide to Commercial Mortgage Loans”. You may also apply for a loan on-line. We never charge any application or processing fees and we offer written pre-approvals within 48 hours. If you are in need of an Apartment Building Loan click the link and click the apply button on the page.
