Conventional Loans

Conventional Loans are available for multifamily apartment buildings with 5+ units. The interest rate is fixed for 3-10 years to ARM or balloon. Finance acquisitions to 75% LTV and 70% LTV for cash-out refinances. The property’s cash-flow is analyzed by dividing the net operating income by the proposed payment. This type loan requires a minimum net worth equal to the loan amount, minimum liquidity of approximately 10%, and standard credit score to qualify.

Lending Criteria Description
Purpose:
  • Purchase and Refinance
Property Type:
  • Apartment Buildings
  • Mobile Home Parks
Max Loan-to-Value:
  • Purchase:  75%
  • Refinance:  75%
  • Cash-out:  70%
Minimum Credit Score:
  • 650
Prepayment Penalty:
  • Step-Down
  • Yield Maintenance
Maximum Debt-Service-Ratio (DSR):
  • 1.25%
Recourse:
  • Yes
Broker Fee:
  • 1 point
Terms:
  • 30-Years
  • 3 / 5 / 7 / 10-Years Fixed/Adjustable
Interest Only:
  • Available
Loan Amounts:
  • $350,000+
Closing Timeframes:
  • 45 – 60 days
Amortization:
  • 30-Years
Collateral:
  • 1st Trust Deeds
Impounds:
  • Required for Tax & Insurance
Other Costs:
  • All 3rd Party Fees
This information is NOT a loan approval or commitment to lend. The actual loan amount, interest rate, fees, costs and monthly payment on your specific loan transaction can vary and will depend on your choice of loan product and your unique credit profile. Loans (in CA) will be made pursuant to BRE License #02001852. Loan Brook, Inc. is an equal opportunity lender.