Purchase & Acquisition
When acquiring a multifamily property, getting attractive financing in place within the necessary timeframe is paramount. Our hands-on approach ensures borrowers get the best loan to meet their objectives when they need it. Bonneville Multifamily Capital provides access to any type of multifamily finance you may need to add a new property to your portfolio. We start the process by gaining a complete understanding of both the project, your situation, and your desired outcomes so we can guide you to the best possible option.
Mortgage Programs for Multifamily Purchase & Acquisition:
- Freddie Mac
- Fannie Mae
- USDA 538
- Insurance Companies
- Private Sources of Capital
FHA Multifamily Purchase & Acquisition Lending
FHA loans are compelling for several reasons. With these loans you have the opportunity to get up to a 35 year fixed-rate amortization without a balloon and no prepayment penalties after 10 years. These loans are assumable and can be a compelling feature of your exit strategy especially as interest rates increase in the years to come. This may even allow your property to sell at a premium.
Agency Multifamily Purchase & Acquisition Lending
Agency (FNMA, FHLMC) multifamily loans are the most readily available types of loans that offer competitive rates with a streamlined process to get you to closing quickly. For Fannie Mae loans we utilize the DUS (Delegated Underwriting and Servicing) Program to expedite your loan closure. This means we are authorized to underwrite, close, and deliver most loans without pre-review from Fannie Mae. We also have a very fast and cost-effective program with the Freddie Mac Small Balance Loan Program. This is a great option for loan amounts in the $1 – $5 million range. This type of loan can be closed in 60-90 days and the associated fees are minimal. Rates and terms are very attractive as well, so this is a great loan for smaller multifamily properties.
Insurance Company Multifamily Purchase & Acquisition Lending
As a sister company to Bonneville Real Estate Capital, which belongs to Q10 Capital, Bonneville Multifamily Capital has unique access to some of the best Insurance Company multifamily loan offerings in the country. These loans are a great option when borrowers can offer lower LTV ratios and they want to lock an interest rate at application. Purchase/acquisition loan to value ratios can go up to 75% with insurance companies and we can fund within 90 days. If permanent financing is needed for a new construction property, we can fund projects that aren’t fully leased up. Interest rates for these types of loans can be very competitive as well.
CMBS Multifamily Purchase & Acquisition Lending
Because this financing alternative is market driven (specifically by investor demand) there are ebbs and flows to the availability of this type of funding. It is typically available during times when institutional investor demand for multifamily product is strong. During those times, aggressive terms are offered to borrowers, often outpacing rates and execution by more traditional GSE based lending.
Other/Private Multifamily Purchase & Acquisition Lending
We typically see apartment owners choose GSE or HUD/FHA programs for their financing. More recently, the private investor pool of capital has begun seeing “out of the box” situations arise so we have an array of other alternatives to get the deal done. We love working on deals the banks refuse. The best way to learn more about which program makes the most sense for you is to speak with one of our experienced loan officers.