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 CriteriaDescription
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