Financing Multi-family Investment Properties
Fannie Mae/ Freddie Mac
Fannie Mae and Freddie Mac loans typically offer high loan-to-values 75% to 80%—and low interest rates.
Investors can use Fannie Mae and Freddie Mac loans to buy or refinance multifamily properties. Terms from both can be for five, seven, 10, or 12 years, interest-only, fixed-rate, hybrid rates, or ARMs. Fannie Mae is also able to offer terms of up to 30 years. Both Fannie Mae and Freddie Mac have “small loan” programs with terms and pricing for investors of multifamily properties with under 50 units or under $7.5 million.
Multi-Family FHA loans
FHA loans, are often desirable for investors because they offer the longest terms, the lowest fixed rates, and the highest leverage levels— up to 85% to 90%. FHA loans typically take six to 12 months to get closed. FHA Loans are non-recourse and terms are often 30-35 years. Multi-family FHA loans are not just for purchasing or refinancing property, it can also be used for new construction or rehab projects.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.
**Nexa Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of FHA, FNMA, Freddie or the Federal Government.