Scaling Your Real Estate Portfolio

9-100 Unit DSCR Mortgage Loan Highlights

Borrowers considering commercial mortgage loan programs for large multi-family projects (9-100 units or larger) should be well-informed and prepared for the complexities of such transactions.

• Loan Types: Various types are available, including traditional bank loans, government-sponsored loans (FHA, Fannie Mae, Freddie Mac), and DSCR loans.
• Eligibility Criteria: Lenders consider borrower's credit, property's location and financial performance, and the borrower's management experience.
• Loan-to-Value (LTV) Ratio: Lenders calculate the maximum loan amount based on the appraised value. A substantial down payment of 20% to 35% is often required.
• Interest Rates: Rates can vary widely based on market conditions and borrower profile, with fixed and variable-rate options available.
• Loan Term: Typically shorter than residential mortgages, often ranging from 5 to 30 years, though amortization can be longer.
• Property Management Experience: Lenders often require borrowers to have prior experience managing multi-family properties.
• Documentation and Due Diligence: Be prepared to provide extensive financial documentation, including income statements, rent rolls, and business plans.