Apartment Loans
Apartment Financing America is an apartment lender that underwrites and originates preferred apartment financing for Fannie Mae, Freddie Mac and FHA with the low rate apartment loans. In addition to offering multifamily financing that is so competitively priced, in every multifamily loan we fund, we aggressively pursue only one goal: making our client more successful. When you combine the inherently competitive pricing of the Fannie Mae, Freddie Mac and FHA multifamily financing we originate with our extraordinary commitment to client success, the results are smooth, efficient loan closing transactions and multifamily loans very low interest rates.
Five decades as an apartment lender has prepared us for any eventuality in apartment lending. Because no situation is ever a mystery, we always stand ready to help our clients with any hurdles that arise in an apartment lending transaction. It is also our pleasure to provide our clients strategic consulting services to plan staged acquisition and portfolio development.
There are so many types of commercial properties, and commercial property loans, that no single lender can expertly serve them all. Even multifamily financing and multifamily loan rates come in many shapes and sizes, especially when it comes to the types of multifamily loans available in the marketplace. It’s not just simply apartment loans anymore. The core of our mortgage banking business focuses our expertise on a narrow segment of the market. The types of core properties for which we offer market leading financing solutions are listed on the right margin.
Core Loan Products
- Apartment Loans
- Multifamily Loans
- Affordable Housing Loans
- Manufactured Housing Loans
- Residential Care Facilities
- Nursing Home Loans
- Hospital Loans
Apartment Loans That Make Deals More Successful
Get Confidential Loan Quote today and see how we can make your next deal more successful
Apartment Loan Programs
It is no coincidence that successful multifamily projects all share certain elements that contribute to that success. The single deal element that we can most control, and over which our expertise has the greatest impact, is apartment financing. We consider all available apartment loan programs and terms carefully before selecting the loan programs we list here and recommend to our clients.
Fannie Mae LoansFHA Multifamily LoansFreddie Mac LoansCMBS LoansBridge Loans
Fannie Mae Apartment Financing |
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Fannie Mae apartment financing is available nationwide in both primary and secondary markets. Fannie Mae DUS multifamily loans can be used for apartment building loans, student housing, affordable housing loans, or independent senior living loans. They can only be used for stabilized properties. Because FNMA has lower borrowing costs than most other sources of multifamily loans, FNMA loans are affordable for many properties that otherwise would have difficulty securing multifamily financing, like older properties, those that need capital improvements and those in smaller communities. There is a $750,000 minimum loan amount on FNMA multifamily loans and maximum loan of 80% LTV on purchases and 75% LTV on refinances. Fannie Mae apartment loans are available with fixed or floating rates, may include an interest-only period, are typically amortized over 25-30 years, with a balloon payment due at the end of the term unless it is a self-amortizing portfolio loan. Learn more about Fannie Mae
Fannie Mae Loan Highlights |
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FHA Multifamily Financing |
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FHA apartment loans are guaranteed by the Federal Housing Administration under the authority of the Department of Housing and Urban Development, known as HUD. FHA multifamily loans are available nationwide, providing financing for a variety of property types including apartments, affordable housing, manufactured housing communities, senior living communities, residential care facilities, nursing homes, acute care hospitals and critical access hospitals. FHA multifamily financing is available for apartment acquisition loans, multifamily construction loans, loans for rehab/renovation and apartment refinancing. FHA multifamily mortgages are self-amortizing loans with very attractive rates. Loans are non-recourse with standard carve-outs and are underwritten for 35-40 years. Minimum loan amounts are $5,000,000 for apartment acquisition loans and refinancing and $25,000,000 for new multifamily construction loans, with maximum leverage of 83.3% on purchases and 80% on refinances.
FHA Loan Highlights |
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Freddie Mac Multifamily Financing |
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The Federal Home Loan Mortgage Corporation or Freddie Mac in the vernacular, is a Government Sponsored Enterprise (GSE) that provides multifamily financing nationwide. Freddie Mac finances properties that span the nation, including large metropolitan areas, mid-market cities and smaller communities that house a wide array of renters, including students, single professionals, working families and senior citizens. Freddie Mac purchases multifamily loans from a network of apartment lenders and securitizes the loans. Because they tend to have lower borrowing costs than most other sources of multifamily loans, Freddie Mac keeps multifamily financing affordable for many properties that otherwise would have difficulty securing funding, including older apartment properties, properties in need of capital improvement and apartment buildings in smaller communities. Freddie Mac apartment loans may be fixed or floating rate and are typically amortized over 25-30 years.
Freddie Mac Multifamily Loan Highlights |
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CMBS Apartment Loans |
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Commercial mortgage backed securities or CMBS apartment loans, which are also known as conduit loans, are commercial apartment loans that are secured by a first lien mortgages or deeds-of-trust on multifamily properties. CMBS multifamily loans are packaged and sold by conduit lenders, commercial banks, mortgage brokers, or syndicates of banks. CMBS multifamily loans have fixed interest rates and may or may not include an interest-only period. The loans are typically amortized over 25-30 years, with a balloon payment due at the end of the term. Apartment Financing America offers low, fixed-rate, permanent CMBS multifamily loans and manufactured housing community loans with loan amounts up to 80% LTV. CMBS apartment financing often provides more flexible underwriting guidelines than GSE loans, which allows many commercial real estate investors to borrow for projects when they otherwise may not meet stringent conventional liquidity and net worth guidelines.
CMBS Multifamily Loan Highlights |
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Multifamily Bridge Loans |
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Apartment bridge loans or Mezzanine loans are short term multifamily loan programs that often provide needed breathing room while a property is undergoing rehabilitation, repositioning or while the property is awaiting a long-term permanent multifamily mortgage to be completed. Commercial banks and hedge funds are the traditional apartment lenders for bridge and mezzanine multifamily loans since these loans are usually held for the full term to maturity, rather than being securitized and sold. Apartment Financing America has advised on and placed many short term multifamily bridge loans. Generally speaking, mezzanine loans get done very quickly because the underwriting team makes a “fill or kill” decision at the beginning of the process. Engaging Apartment Financing America early in the loan process is critical because it is so important to have all relevant information along with a clearly understandable and achievable exit strategy reviewed, packaged, and presented correctly.
Multifamily Bridge Loan Highlights |
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Types of Apartment Loans
Several types of multifamily financing, based upon the purpose of the loans, are offered by Apartment Financing America. The loan types or purpose of the loans which are listed below are self evident. Please review the summary loan information and then click through to the type of multifamily loan that best suits your needs for more complete loan information. Or, if you prefer, Apartment Financing America will prepare an exclusive, detailed property analysis and loan quote for your project. There is no obligation and it will give you some insight into how we can make your apartment deal more successful.
Acquisition LoansConstruction LoansRehabilitation LoansCMBS Loans
Apartment Acquisition Loans |
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| Fannie Mae financing is available nationwide in primary and secondary markets and is funded under the Fannie Mae Delegated Underwriting Services (DUS) Program. These loans are for stabilized properties only with a minimum $750,000 loan amount with rates that can be fixed or floating. FNMA financing can be used for traditional multifamily properties, student housing, affordable housing, or independent senior living. Maximum leverage is 80% on purchases and 75% on refinances within designated areas. Loans may be recourse or non-recourse.In many ways, our Multifamily business is an affordable housing business. Almost every loan we finance supports affordable rental housing. Historically, roughly 90 percent of the loans we finance in any given year support low- and moderate-income households who earn no more than area median income. Because we tend to have lower borrowing costs than certain other funding sources, we help keep financing affordable for many properties that otherwise would have difficulty securing funding, including aging properties, those in need of capital improvements and apartments in smaller communities.The loan may be fixed or floating (which may or may not include an interest-only period) and is typically amortized over 25-30 years, with a balloon payment due at the end of the term unless it is a self-amortizing portfolio loan. | |
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Apartment Construction Loans |
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| The Federal Housing Authority (FHA) guarantees these mortgages under the authority of the Department of Housing and Urban Development (HUD), making them available nationwide. FHA loans are for stabilized properties that have been in operating for at least 3 years (under the 223(f) program) or for the construction of large projects (under the 221(d)(4) program) and are underwritten for 35-40 year self-amortizing loans with attractive rates. FHA multifamily mortgages can be used for traditional multifamily properties, affordable housing, or senior living. Maximum leverage is currently 83.3% on purchases and 80% on refinances with a minimum loan amount of $5 million for purchase or refinance or $25 million for construction. Because the government guarantees these loans, they are always non-recourse, except standard carve-outs. | |
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Apartment Rehabilitation Loans |
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| The Federal Home Loan Mortgage Corporation or Freddie Mac in the vernacular, is a Government Sponsored Enterprise (GSE) that provides multifamily financing for apartment loans throughout the United States, purchasing loans from a network of multifamily lenders and then securitizing these loans. Our fundings span the nation, including large metropolitan areas, mid-market cities and smaller communities. And the properties we finance house a wide array of renters, including students, single professionals, working families and senior citizens.In many ways, our Multifamily business is an affordable housing business. Almost every loan we finance supports affordable rental housing. Historically, roughly 90 percent of the loans we finance in any given year support low- and moderate-income households who earn no more than area median income. Because we tend to have lower borrowing costs than certain other funding sources, we help keep financing affordable for many properties that otherwise would have difficulty securing funding, including aging properties, those in need of capital improvements and apartments in smaller communities.The loan may be fixed or floating (which may or may not include an interest-only period) and is typically amortized over 25-30 years, with a balloon payment due at the end of the term unless it is a self-amortizing portfolio loan. | |
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Freddie Mac Apartment Loans |
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| The Federal Home Loan Mortgage Corporation or Freddie Mac in the vernacular, is a Government Sponsored Enterprise (GSE) that provides multifamily financing for apartment loans throughout the United States, purchasing loans from a network of multifamily lenders and then securitizing these loans. Our fundings span the nation, including large metropolitan areas, mid-market cities and smaller communities. And the properties we finance house a wide array of renters, including students, single professionals, working families and senior citizens.In many ways, our Multifamily business is an affordable housing business. Almost every loan we finance supports affordable rental housing. Historically, roughly 90 percent of the loans we finance in any given year support low- and moderate-income households who earn no more than area median income. Because we tend to have lower borrowing costs than certain other funding sources, we help keep financing affordable for many properties that otherwise would have difficulty securing funding, including aging properties, those in need of capital improvements and apartments in smaller communities.The loan may be fixed or floating (which may or may not include an interest-only period) and is typically amortized over 25-30 years, with a balloon payment due at the end of the term unless it is a self-amortizing portfolio loan. | |
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Apartment Loans That Make Deals More Successful
Get Confidential Loan Quote today and see how we can make your next deal more successful