Multi-family loans are those loans for rental residences from five units up, to small and large apartment complexes. The reason for commercial limitation of five, is that any lesser number falls under Federal RESPA regulations which are restrictive; and most every commercial lender will steer clear of this regulatory environment. That being said, we do have some resources for some states who will finance (usually with hard money) less than that five unit number.
There are a number of US Governmental programs which will back these loans; FHA, HUD, and for certain rural areas, USDA. And each carries it's own advantages: For instance, HUD loans are often longer, fully amortized terms, and non-recourse -- valuable for those owners who desire who desire to maximize cash flow, or to avoid personal guarantees.
Because of the governmental backing, these loans are more attractive to lending banks and institutions. And even in a tight lending environment, these loans are (still) some of the most desirable for a lender to keep on a portfolio. And rates are incredibly low at this time. At the time of this writing, HUD loans are around 4%. At these levels, even those borrowers who have existing loans would find great benefit to lower their payments, or extend their terms. --We highly encourage new borrowers, or those with existing loans to call us to discuss this possibility.
Five units to full apartment complexes.
FHA, HUD, and for certain rural areas, USDA. Non governmental programs include Hard Money, which can go up to 100% of purchase price.
One or more individuals, Corporation, Limited Liability Company, General or Limited Partnership, Joint Venture, Trust.
5-year balloon with 10-year amortization, 10-year balloon with 15-year amortization, 15-year balloon with 20 year, etc. HUD loans generally go up to 35 years with full amortization, and are non-recourse.