• January 21, 2022

Financing Options For First-Time Multifamily Property Investors

Multifamily property can provide steady cash flow, so it's obvious that you can make a good investment. Multifamily properties can offer more potential income and increase in net worth than single-family homes, provided you do your research.

Working with the right lender will help you get through this process. Before you begin, it is important to know the financing options for multi-family property investors. This will allow you to choose the right loan for you when it comes time. You can also contact solarenergyloanfund.org/loan/multifamily-non-profit-and-community-energy-improvement-loans/ for more information about the loans for multifamily properties.

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Various options for financing:

Fannie Mae and Freddie Mac Loans

Fannie Mae loans and Freddie Mac loans are also known as "Agency Loans" because they operate under a congressional chart. This makes them worthy of a closer look. Fannie and Freddie's loans offer high leverage levels, 75% to 80%, and low-interest rates.

FHA Loans

FHA loans are also known as FHA-insured funding. These loans are government-insured loans and are attractive to investors. They offer the longest terms and lowest fixed rates. Additionally, they have the highest leverage levels, up to 85% to 90%.

The Bottom Line

Investors want to obtain a loan that is both affordable and meets their requirements. The best loan might be different for each investor. It all depends on the property and creditworthiness of the borrower as well as the principals and the level of leverage required by the investor.