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Financing for:
Apartment Developments
Acquisition & Refinance
(480) 970-0990


ACQUISITION AND REFINANCE

There are a wide variety of financing sources available for apartment properties. The factors that are important are the size, number of units, of the property; the age and condition and of course the rate of occupancy and stability. Most properties fall into a mid range of 80 to 200 units and are at least 20 to 40 years old. Properties are rated in general as A, B, C depending on the above factors. Most are a mid range B. The quality of a property will impact the interest rate and other loan terms.

FUNDING SOURCES

Federal agencies are active in the apartment market. Fannie Mae does fixed and floating rate loans with a minimum of $750,000 up to 80% for a purchase. Freddie Mac will do loans of $1,000,000 and above at 80% for a purchase. The Federal Housing Authority (FHA) does apartment loans starting at $5,000,000 at 80%. If there is deferred maintenance it will have to be corrected.

Conventional lenders, banks, are very active in the market and more flexible and faster than the agencies. Interest rates may be fractionally higher and the term and amortization shorter. The CMBS lenders are also a strong source of funding. Insurance companies are always interested in large loans on stable properties with a lower LTV.

CONSTRUCTION LOANS

FHA apartment construction loans are advantageous. They start at $3,000,000 and 83% of cost with very long amortization and term. Putting these loans together is not easy and is very time-consuming.

Banks do conventional construction loans. They will usually be around 70% of cost with a term of 3 to 5 years. Sometimes they will roll into a longer maturity. The financial strength of the borrower is an important factor in construction lending.

APARTMENT DEVELOPEMENT FINANCING

There are many variables involved in purchasing or refinancing an apartment property. Getting the right financing is crucial. Contact us before you initiate any transaction, purchase, refinance or construction.

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MINIMUM LOAN SIZE IS $1 MILLION

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8204 East Del Caverna Drive, Scottsdale, AZ. 85258
info@fcfcorporation.com
AZ CMB-0922527
NMLS ID 181100
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