HUD Multifamily Loans

5+ Unit Multifamily Financing: The Complete Guide

5+ Unit Multifamily Financing: The Complete Guide

5+ unit multifamily financing options include bank loans, CMBS loans, Fannie Mae and Freddie Mac multifamily loans, hard money, and more.

Multifamily Mortgage Loan Requirements, Explained

Multifamily Mortgage Loan Requirements, Explained

Multifamily mortgage lenders have a variety of requirements for borrowers, including various rules involving LTV, DSCR, borrower experience, and much, much, more.

Should You Work With A Commercial Mortgage Broker?

Should You Work With A Commercial Mortgage Broker?

Due to their relationships with multiple lenders and industry experience, good commercial mortgage brokers can negotiate better rates and terms for borrowers while increasing their chances of closing.

What are Commercial Loan Origination Fees?

What are Commercial Loan Origination Fees?

In commercial real estate finance, an origination fee is an amount of money charged by a lender for processing a loan. Loan origination fees can vary, and are often between 0.5% and 1%.

Do Commercial Loans Require Commercial Mortgage Insurance?

Do Commercial Loans Require Commercial Mortgage Insurance?

Most single-family home mortgages require the borrower to pay private mortgage insurance (PMI), or, for HUD and USDA loans, a mortgage insurance premium (MIP). This insurance protects the lender in case the borrower falls behind on their payments or defaults on their loan. However, the vast majority of multifamily and commercial real estate loans do not require mortgage insurance, with the exception of HUD multifamily loans.

What is a Good Cap Rate for a Hotel?

What is a Good Cap Rate for a Hotel?

In general, there is no one good cap rate for a hotel investment. A good cap for a hotel varies based on asset quality, asset location, and industry metrics, such as RevPar (revenue per available room) and ADR (average daily rate). Hotels generally offer the highest cap rates of any asset class, with cap rates typically varying from 7.5% to 10.5% depending on asset type and market conditions.

What is the Minimum Debt Yield for a Commercial Loan? 

What is the Minimum Debt Yield for a Commercial Loan? 

In general, the minimum debt yield for a commercial real estate loan is around 10%. Some lenders, however, place their minimum debt yield requirements as low as 8%, while others require debt yields of up to 12%.

What are the Underwriting Guidelines for FHA Multifamily Loans?

What are the Underwriting Guidelines for FHA Multifamily Loans?

The underwriting guidelines for FHA multifamily loans are perhaps the strictest on the market today, excluding perhaps underwriting guidelines from life company lenders. HUD and lenders require a wide scope of reports, including appraisals, market studies, environmental reports, and much, much more.

Small Apartment Loans for Investors: The Ultimate Guide 

Small Apartment Loans for Investors: The Ultimate Guide 

The definition of a small balance apartment loan varies from market to market and lender to lender but is typically defined as a loan between $750,000- $1 million to $5-7 million. While these loans may seem large to the smaller investor, many multifamily lenders are institutional in nature and rarely provide loans under $10 million.

The Top 20 Property Management Companies of 2020-2021

The Top 20 Property Management Companies of 2020-2021

Owning and operating a multifamily property can be a challenge, however, if you employ a competent property management firm, you’ve already won half the battle. In this article, we’ll review some of the top 20 multifamily property managers of 2020-2021, including Greystar, BH Companies, Lincoln Property Company, Pinnacle Property management, Bozzuto, Cortland Properties, and more.