Multifamily Acquisition Loans
We offer some of the most competitive multifamily acquisition loans in the world. Although we offer a full range of multifamily mortgage loans, our primary focus is multifamily acquisition loans. In maintaining this focus on our core multifamily lending activities, we are able to provide our clients with very low interest apartment acquisition loans.
We also provide our clients with unparalleled multifamily lending expertise. We began honing our lending expertise more than four decades ago when Founder and Managing Partner Kathryn Thompson bought her first real estate deal at the age of 16. Our expertise has grown considerably in the last 40 years, but it was her entrepreneurial spirit that gave rise to our apartment lending expertise decades ago.
Multifamily acquisition loans we offer are insured by the nation’s Government Sponsored Enterprises, which includes FHA , Fannie Mae and Freddie Mac. We also originate apartment acquisition loans through correspondent relationships, insuring we are always positioned to provide sophisticated real estate investors with the multifamily acquisition loans they require.
FHA Multifamily Acquisition Loans
The Federal Housing Administration or FHA is part of the Department of Housing and Urban Development or HUD, the largest mortgage insurance provider in the United States. FHA multifamily loan programs offer long-term, fixed-rate, non-recourse multifamily acquisition loans with terms up to 35 years.
As the availability of multifamily acquisition financing has fluctuated tremendously in recent years, it has, at times been extremely limited. In response, multifamily investors and developers have begun turning to GSE lending to originate multifamily acquisition loans. FHA multifamily acquisition loans play a crucial role in the capital markets as it is a source of multifamily financing that is always available, regardless of the vagaries of the capital markets.
Fannie Mae Multifamily Acquisition Loans
The Federal National Mortgage Association (FNMA) or Fannie Mae, underwrites mortgages for multifamily acquisition loans, affordable housing loans, and government-issued revenue bond issues. Fannie Mae actively purchases apartment acquisition loans under the Fannie Mae DUS Multifamily Loan program. Through correspondent lending relationships Apartment Financing America offers a full range of Fannie Mae multifamily loan programs.
Freddie Mac Multifamily Acquisition Loans
The Federal Home Loan Mortgage Corporation (FHLMC) who is best known as Freddie Mac, is a government sponsored enterprise (GSE) that was created in 1970 to provide liquidity, stability, and affordability to the single family lending market. Like its rival, Fannie Mae, Freddie Mac issues insurance for multifamily mortgages. Freddie Mac has a series of loan programs; fixed-rate multifamily loans, affordable housing loans, seniors housing loans and supplemental loans, that mirror almost exactly those of Fannie Mae. The major differences between the two institutions are that Freddie Mac requires a pre-review meeting with its mortgage brokers for each deal. It then makes its own underwriting review of the loan package, and commits in its name.
A Freddie Mac loan is an excellent choice for larger, well-located, brochure quality properties. Freddie Mac apartment acquisition loans deliver very competitive interest rates and terms; and are known for very fast turnaround time when they want to make a loan. Learn more about the Freddie Mac loan programs offered by Apartment Financing America.
CMBS Multifamily Acquisition Loans
Commercial Mortgage-Backed Securities or CMBS loans are originated by large investment banks who purchase mortgages secured by income-producing real estate. It can be of any property type but is usually traditional office, retail, hospitality, and multifamily. The individual mortgages are bundled into large portfolios that are rated by credit rating agencies, priced by the market, and sold to institutional investors. The investors receive an interest rate which is the weighted average of the interest rates of the individual loans, less mortgage servicing and fund fees.
Properly-structured, properly rated CMBS multifamily acquisition loans can yield investors a good rate of return, while providing investors the safety of a geographically diverse pool of assets, which is unlikely to create a default en massé. Learn more about the CMBS loan programs offered by Apartment Financing America, as well as the Fannie Mae Discount Mortgage Backed Securities program.