## What is a Multifamily Term Loan?

 

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. 

 

## Underwriting Criteria for Multifamily Term Loans

 

Multifamily term loans are based on the following underwriting criteria:

 

✅ Deal economics (see: [DSCR Calculator](https://www.offermarket.us/tools/dscr-calculator))
✅ Borrower track record of experience
✅ Borrower credit score

 

## Multifamily Term Loan Interest Rates

 

Our [DSCR Loan Index](https://www.offermarket.us/blog/dscr-loan-interest-rate-index) tracks the prevailing interest rate for DSCR loans. See how OfferMarket's DSCR loan interest rate and terms compare:

 

<iframe width="551" height="371" seamless frameborder="0" scrolling="no" src="https://docs.google.com/spreadsheets/d/e/2PACX-1vRJPw1fYWqj_5mdlNBrD5MLne_ApqpOXlNmkmNE_sZfPgsbn9pU0mWUenEO1x6WE9237S7jzaQE2Hig/pubchart?oid=262687025&amp;format=interactive"></iframe>
 
 

## Multifamily Bridge Loan Guidelines

 

<div style="display: grid; grid-template-columns: repeat(1, minmax(0, 1fr)); overflow: auto; white-space: nowrap;">
<table>
<thead>
 <tr>
 <th>Guidelines:</th>
 <th>Multifamily Bridge Loan</th>
 </tr>
</thead>
<tbody>
 <tr>
 <td>Interest Rates</td>
 <td>see index above</td>
 </tr>
 <tr>
 <td>Origination Fees</td>
 <td>1 to 2 points (% of loan amount)</td>
 </tr>
 <tr>
 <td>Property Types</td>
 <td>5+ unit and mixed use</td>
 </tr>
 <tr>
 <td>Loan Amounts</td>
 <td>$500,000 - $25,000,000</td>
 </tr>
 <tr>
 <td>Maximum LTV, ARV</td>
 <td>75%</td>
 </tr>
 <tr>
 <td>Maximum Loan To Cost</td>
 <td>Purchase: 80% of As-Is Value and 100% of rehab, Refinance: 75% of As-Is Value and 100% of rehab</td>
 </tr>
 <tr>
 <td>Term Length</td>
 <td>up to 24 months -- +0.5% for months 13 - 18, +0.75% for months 19 - 24</td>
 </tr>
 <tr>
 <td>Minimum Guarantor FICO</td>
 <td>650</td>
 </tr>
<tr>
 <td>Ownership</td>
 <td>LLC or Corporation</td>
 </tr>
 <tr>
 <td>Recourse</td>
 <td>Full recourse, Limited recourse</td>
 </tr>
</tbody>
</table>
</div>

 

## What is the process for getting a multifamily term loan?

 

**Timeline:** 15 - 30 days

 

1. [Get a quote](https://www.offermarket.us/loans) (takes 1 minute)
 
2. Complete processing action items in your [My Loans portal](https://www.offermarket.us/my/loans)
 
✅ Credit & Background Check
✅ Personal Financial Statement
✅ Schedule Of Real Estate Owned (track record of experience)
📄 Download your pre-approval letter
📄 Download your loan terms
✅ Upload entity docs
✅ Authorize title order
✅ Authorize appraisal order
3. Schedule closing

Multifamily term loans are asset-based for purchasing and refinancing 5+ unit residential properties. OfferMarket offers these loans to experienced investors.

large_Multifamily Term Loans Private Lender.png

medium_Multifamily Term Loans Private Lender.png

small_Multifamily Term Loans Private Lender.png

thumbnail_Multifamily Term Loans Private Lender.png

Multifamily Term Loans Private Lender.png

Multifamily Term Loans | OfferMarket

Multifamily Term Loans

## The Simple Answer

 

The best time to buy a house is when demand is low.

 

## Seasonality of housing demand:

 

From a seasonal perspective, housing demand is lowest during the Fall and Winter months.

 

## School

 

For families looking to buy a house, it is logistically and emotionally difficult to coordinate a move during the school year. This is why demand for single family houses spikes in the Spring and Summer so children can be settled into their new house in time to start fresh at a new school.

 

## Holidays

 

During the holiday season, spending on gifts takes priority for many would-be homebuyers. Shortened work weeks, and holiday activities also limit the time homebuyers have to go house hunting.

 

## Weather & Daylight Hours

 

Finally, cold weather and shortened daylight hours tends to keep people indoors makes house hunting less appealing.

 

## Going Against The Trend

 

During the COVID-19 coronavirus pandemic, we saw record low interest rates and a demand for more space concentrate demand on larger suburban houses. Accordingly, house prices rose significantly in many markets:

 

<iframe src="https://fred.stlouisfed.org/graph/graph-landing.php?g=yrHL&width=670&height=475" scrolling="no" frameborder="0" style="overflow:hidden; width:670px; height:525px;" allowTransparency="true" loading="lazy"></iframe> 

 

During such times, the contrarian homebuyer would look for houses to buy in markets that were negatively impacted by this phenomenon. Therefore, instead of buying a detached single family house in the suburbs, you would buy an attached single family townhome in the city. 

 

Or have the discipline to hold off on buying until the market cools down -- per our earlier commentary this would mean waiting until the winter months.

 

As famed investor Warren Buffett said: *"Be fearful when others are greedy, and greedy when others are fearful"*.

When is the best time to buy a house? Learn our insights and save money when you buy your next house or investment property.

large_FAQs - When Is The Best Time To Buy A House_ - MetaImage.jpg

medium_FAQs - When Is The Best Time To Buy A House_ - MetaImage.jpg

small_FAQs - When Is The Best Time To Buy A House_ - MetaImage.jpg

thumbnail_FAQs - When Is The Best Time To Buy A House_ - MetaImage.jpg

FAQs - When Is The Best Time To Buy A House_ - MetaImage.jpg

When is the best time to buy a house? - OfferMarket

When is the best time to buy a house?

### *We don't have a housing shortage. We have a shortage of desirable houses.*

 

In this article, we will explain the difference, and what real estate investors like you can do to profit from this misunderstood reality.

 

## Problem: Shortage Of Houses In Desirable Markets

 

Now that work from home has become widely acceptable, and the new normal, an overwhelming number of people have decided to pick up and relocate to one of several more attractive markets. This includes "sun belt", lower tax, and economically well-positioned destinations such as Phoenix, San Antonio, Jacksonville, Tampa, Orlando, West Palm Beach, Miami, Raleigh, Columbus, etc.

 

The problem is, there simply aren't enough enough homes for all of the people that want to move to these locations. A basic supply and demand imbalance has caused home prices in these markets to skyrocket. 

 

To use emojis, you have people 🧑🏾‍🤝‍🧑🏽 who have the same idea💡 to live some place nice 🌴 so they move there 🚚 and try to buy the same houses 🏠 which causes the houses to dramatically increase in price 📈 💰🚀.

 

## Solution for Investors: Build More Homes

 

If you're a real estate investor, you can profit by increasing the housing supply in these markets. You can use OfferMarket's Ground Up Construction program to fund land acquisition and construction budget -- up to 60% of the land cost and 100% of construction.

 

## Solution for Buyers: Consider Other Markets

 

Make no mistake, there is a housing bubble and mania that has swept through many regions and markets. Fear of missing out is real, and can drive people to make decisions that they later come to regret. Avoid overpaying for your next home. Avoid bidding wars and settling on a home that you otherwise would not be interested in buying in a normal market. 

 

Take a step back and re-evaluate your options:

 

- What are some less well-known markets that offer better value and are fundamentally attractive with good prospects for long term home price appreciation?
- Does it make sense to move right now, or can you afford to be patient and let this housing mania and bubble deflate?
- Are there off market fixer uppers available for a better value? [Subscribe to our off market deal flow](https://www.offermarket.us/survey/subscribe/deal-flow).

 

## Shortage Of Houses In Desirable Condition

 

There is a strong preference among buyers to want turnkey, move-in ready homes. It makes sense: the last thing buyers want to do after paying the down payment on a home is to coordinate moving into a home that needs to be renovated. Not only is it an additional cost, it's a logistical complication figuring out timing to move, contractors, planning the DIY components to save money. The limited housing supply on the market has moved many savvy, daring and well capitalized buyers to consider properties that need fixing.

 

## Solution for Investors: Renovate More Homes

 

Fix and flip investors are important participants in the housing market. It's one thing to encourage investors to flip more homes, it's another to actually find the distressed inventory (i.e. houses in poor condition) required to increase the number of homes being flipped in a given market.

 

To find more inventory:

 

- [Subscribe to off market deal flow](https://www.offermarket.us/survey/subscribe/deal-flow)
- Network with wholesalers
- Drive for dollars -- look for distressed houses in your market and get in contact with the owner

 

To fund your fix and flip projects, [get a bridge loan quote from OfferMarket](https://www.offermarket.us/loans). We fund up to 90% of the purchase price and 100% of the rehab and can close your transaction in 15 days. This type of loan is commonly referred to at "fix and flip" and "hard money".

 

## Solution for Buyers: Consider Fixer Upper Houses

 

Buying a fixer upper is a great way build home equity and wealth. There are loan programs for primary residence homebuyers such as the [FHA 203k]9https://www.offermarket.us/real-estate-glossary/fha-203k-loan) renovation loan that includes the scope of repairs in your mortgage, allowing you to put as little as 3.5% down and have your rehab component added to your mortgage. 

 

## Summary: Focus On Value

 

Think like value investor. Real estate is an asset, and should be thought of as an investment. As with the stock market, if everyone is chasing the same investment strategy, a bubble forms, prices get out of control, animal spirits and FOMO make buyers overpay. 

 

Focus on markets and inventory that is less desirable. That is where the value is. There will be times when the most attractive markets present attractive buying opportunities -- think aftermath of the 2008 financial crisis (2009-12) in South Florida. That time is not now. Cooler heads and a disciplined approach will prevail.

We don't have a housing shortage. We have a shortage of desirable housing and that is an important distinction that real estate investors can profit from.

large_We Don't Have A Housing Shortage.png

medium_We Don't Have A Housing Shortage.png

small_We Don't Have A Housing Shortage.png

thumbnail_We Don't Have A Housing Shortage.png

We Don't Have A Housing Shortage.png

What Housing Shortage? | OfferMarket Blog

What Housing Shortage?

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket provides DSCR rental loans, bridge loans, hard money, fix and flip, slow flip, and ground up construction loans.

Private Lending | OfferMarket

Private Lending

How to calculate profit for a fix and flip

Hard money fix and flip loans

**Last updated:** February 20, 2025

 

<div class="calconic-calculator" data-calculatorid="623f519f1e51480020aa3bd7"></div>
<script>
 (function() { var qs,j,q,s,d=document, gi=d.getElementById,
 ce=d.createElement, gt=d.getElementsByTagName,
 id="calconic_", b="https://cdn.calconic.com/static/js/";
 if(!gi.call(d,id)) { j=ce.call(d,"script"); j.id=id; j.type="text/javascript"; j.async=true;
 j.dataset.calconic=true;
 j.src=b+"calconic.min.js"; q=gt.call(d,"script")[0]; q.parentNode.insertBefore(j,q) }
})();
</script>

 

## How to calculate profit for a fix and flip

 

To calculate profit when flipping a house, you need to factor in several costs.

 

**Initial purchase:**

 

- Purchase Price
- Closing costs (title, transfer and recordation)
- Lender fees (origination fee, legal, lender's title insurance)
- Insurance (builders risk policy)

 

**Sale:**

 

- Rehab costs (materials, labor, soft costs
- Agent/broker commission
- Closing costs (title, transfer and recordation)
- Lender fees (interest, draw fees)
- Taxes

 

## Hard money fix and flip loans

 

Most flippers use hard money from a private lender, otherwise known as a fix and flip loan. These are interest only loans specifically for fix and flip investors to purchase and rehab properties. Learn more about [fix and flip loans](https://www.offermarket.us/blog/bridge-loans-fix-and-flip-loans-hard-money).

Run your numbers with our Fix and Flip Calculator to determine cash to close, profit and cash on cash returns.

*Quote takes 2 minute, no credit pull

*1 quote from 40+ carriers

*New listings daily

Fix and Flip Calculator

How to calculate profit for a fix and flip

Hard money fix and flip loans

* Takes 2 minutes, no credit pull