Multifamily Loans
What is a Multifamily Loan?
Multifamily Loans are for properties of 5 residential rental units or more as defined by HUD, Fannie Mae and Freddie Mac. Multifamily Loans are offered by HUD, Fannie Mae, Freddie Mac, Life Companies, Community Banks, Regional Banks, Credit Unions, National Banks, REIT’s, CMBS, Private Debt Funds and more.
Multifamily Loans with No Money Down
Let’s talk some straight talk about this subject. We get a lot of calls from people who desire to get 100% financing on purchasing an apartment building. I’m not saying this cannot be done but the bottom line is that just like most things in life, multifamily properties are not given out risk free. In my book I go over the top six risks all commercial lenders dread. Number one is the borrower not having enough skin in the game. The last thing lenders want is to take 100% of the risk with the investor risking zero. Even hard money lenders who allow an owner carry second, want the borrower to put 15 – 20% of their own money in.
Two Methods of Purchasing a Multifamily Property with No Money Down
After making it clear above that this is difficult to do, I do have clients that successfully buy multifamily properties with no money down over and over. They still have to pay for closing costs.
For methods of purchasing and all the details about Multifamily Loans please see our
For our Multifamily Loan Rates please go here