Multifamily & Apartment Construction and Development Financing

Construction financing is back again, and terms are more competitive than ever. For apartment construction loans, HUD is, as always, offering the most competitive fixed-rate, fully amortized, high-leverage, non-recourse financing, but as you already may know, those HUD 221(d)(4) deals come with a good amount of red tape and a long timeline (usually seven to 10 months to close).

Small banks are currently lending up to 65% of project cost at PRIME + 1.50% +/-;regionals are a bit more aggressive and lending at as low as LIBOR + 2.50%. The nice thing about bank construction loans is that they are available for most commercial property construction, including mixed use, office, retail, industrial, and more. They also allow you to take your finished/stabilized product and recapitalize once the project is complete with a cash-out refinance or sale, with limited or no prepayment penalty.

For multifamily properties,Fannie, Freddie, and CMBS offer unlimited cash outup to 80% LTV depending on the particular scenario. HUD loans, although offering the highest leverage, do not generally allow for recapitalization (there is a lockout period followed by a hefty prepayment penalty). For commercial properties,life companies and banks offer comfortable permanent financing options with some level of recapitalization or earnouts.

Call (800) 567-9631 to speak with a multifamily construction loan specialist, or fill out the form below to schedule a free consultation.

Link:
Multifamily Construction Loans Multifamily.loans

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December 19, 2018 at 1:44 am by Mr HomeBuilder
Category: Apartment Building Construction