Let’s say you’ve saved a significant amount of money and you want to use that influx of resources to grow your investments even further. Buying a multifamily property could be the perfect option—and the best way to do that is to obtain a multifamily loa
Multifamily loans are necessary whether you’re looking to invest in a five-story apartment building or renovate and/or develop a long-standing quadruplex. Meanwhile, the process needed to qualify for a multifamily loan is different than a typical home loan.
But make no mistake, the benefits of real estate ownership—and capital flexibility in today’s world—can far outweigh the costs and obstacles involved in obtaining the mortgage loan.
Ideal for investors who want traditional multifamily financing for 2 to 4 units in good condition.
These work for an owner-occupant of 2 to 4 unit property or investor with 5-plus units.
Mainly for an investor who wants to finance multiple properties at once.
Perfect for a fix-and-flip investor who wants to purchase a distressed property quickly.
Applying for a multifamily loan can require extensive documentation for underwriting. You’ll need to submit property management agreements, current lease agreements, insurance policy declaration, tax bills, and perhaps more.
Other documents you’ll need to submit include property details such as the address, along with photos, number of units, and age of the property; financials including the current operating statement, rent roll, utilities, and copies of service contracts; as well as personal financial statements proving equity, cash reserves, and down payment funds.
First-time home buyers may qualify for various conventional and government-backed loans, such as those offered through Fannie Mae, Freddie Mac, the Federal Housing Administration, U.S. Department of Agriculture, and Veterans Affairs.Read More
Renovation costs can be added to specific rehab loans offered through the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac for borrowers meeting specified criteria, such as down payment amounts, project scopes, credit scores, and other requirements.Read More
It’s best to have all documentation, financials, commitment letters, and mortgage options prior to making an offer on a property in the current record-breaking spring home-buying season led by low interest rates, pent-up demand, and decreased inventory.Read More
Insured and subsidized by various federal agencies, U.S. government-backed mortgages can help borrowers achieve home ownership through low interest rates and down payments, closing fee allowances, flexible credit scores, and other advantages.Read More