Multi-family Properties

Best For: Experienced Multi-family borrowers who seek financing for investment properties with 5-10 units for the purchase and rehab of a property to maximize market rents. Can also be used for the refinance of currently owned properties to renovate and increase current market value.

DETAILS:

DSCR: Minimum of 1:20 from market rents

Refinance/Rehab: No cash out, PAYOFF and Rehab Only

Location: No rural properties, must be in a metro area. No vacancy or abandoned properties nearby. No blight ridden areas

Liquidity Requirements:
Minimum of all closing costs in addition $15,000 OR 25% OF THE RENOVATION BUDGET OR CONSTRUCTION BUDGET, WHICHEVER IS GREATER.  Plus closing costs. Contact us for details.

ADDITIONAL INFORMATION:

FICO ≥ 700

Closing times in 5-10 business days

Loan Amount $100,000 – $1,250,000

Minimum Value per Unit:  $35,000

Property Type:  5-10 Units

Term: 9-month term with 3-month extension (extension fees apply).

Liens: 1st liens only. No subordinate liens.

Purchase: 85%

Rehab Budget: 100%

65% ARV

IMPORTANT NOTES:

  • Rehab Budget: Max budget at 150% of Purchase Price (Exception on a case-by-case basis) Property: No SRO’s, No Condo’s, Minimum Sq Ft of 500 sq. ft. per unit, No Assisted Living or nursing homes, No environmental issues (oil tank certification required), No short-term rentals.
  • Full Doc: Seller’s financials on the rent roll required: Market Rents will be used for DSCR purposes. A true and certified, current rent roll from the owner, supported by a current operating statement no older then 45 days of submission. All commercial leases must be submitted along with 20% of residential leases. If property is vacant Market rents will be used.
  • Experience: Borrower must have a minimum experience of 3 prior projects and 1 needs to be multi-family within 3 years. Max at 65%. No new borrowers. Must have local market experience.
  • Fixed Expense: Management, Maintain and reserves at 5,3,2%. Taxes and Insurance. Vacancy will be 5% and update per the Appraisal actual numbers. Greater than 20% Vacancy will not be accepted. NO EXCEPTIONS
FIND OUT IF YOU PREQUALIFY