Multifamily term loans are asset-based loans for purchasing and refinancing 5+ unit residential properties. Multifamily term loans have an interest and principal repayment (amortization) component. Investors have a few options when selecting the best multifamily term loan for a specific deal.
Multifamily term loans are based on the following underwriting criteria:
✅ Deal economics (see: DSCR Calculator) ✅ Borrower track record of experience ✅ Borrower credit score
Our DSCR Loan Index tracks the prevailing interest rate for DSCR loans. See how OfferMarket's DSCR loan interest rate and terms compare:
|Guidelines:||Multifamily Bridge Loan|
|Interest Rates||see index above|
|Origination Fees||1 to 2 points (% of loan amount)|
|Property Types||5+ unit and mixed use|
|Loan Amounts||$500,000 - $25,000,000|
|Maximum LTV, ARV||75%|
|Maximum Loan To Cost||Purchase: 80% of As-Is Value and 100% of rehab, Refinance: 75% of As-Is Value and 100% of rehab|
|Term Length||up to 24 months -- +0.5% for months 13 - 18, +0.75% for months 19 - 24|
|Minimum Guarantor FICO||650|
|Ownership||LLC or Corporation|
|Recourse||Full recourse, Limited recourse|
Timeline: 15 - 30 days
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