Financing Options for Multifamily Properties in Colorado
Small Apartment Building Loans
Multifamily properties with 5 or more residential units
Purchase Loans up to 80%* of sales price or appraised value on purchases
Refinance financing up to 80% under $2 million for refinance, including "cash-out"
Loan amounts: ranging from $250,000 to $1,000,000
Terms: 3, 5 and 7 year terms. variable rate based on the LIBOR or MTA index.
Amortization: 25 to 30 years (65% maximum LTV for 30 yrs)
Debt Service Coverage 1.20 minimum DSCR
- Property must be within 25 miles of city with population of 200,000
Borrower Eligibility:
- 660 credit score minimum required
- 4 year seasoning on foreclosure, short sale, chap 7 or 11 BK, 2 years for chapter 13
- Colorado Small multifamily loans are Recourse
Highlights:
- Owner-occupied or investment properties
- 48-hour pre-approvals
- Lite Doc and 12 months bank statement used for income ( NO TAX returns!! )
- Minimum population requirements
- 3 to 5 year prepayment penalty
- Blanket loans for multi-unit properties (No single family)
Rates are competitve, not Hard Money rates
$1 million to $5 million
Loan Purpose - Acquisition or Refinance
Loan Terms - 20-year hybrid ARM with initial 5-, 7-, or 10-year fixed-rate period
Amortization - Up to 30 years
Liabilty - Non-recourse with standard carve-out provisions
Property Characteristics:
- Less than 30 units
- 90% occupied
- DCR of 1.20x in major urban markets, 1.30 to 1.40 in smaller markets
Eligible Borrowers:
Liquidity: 9 months of Mortgage payment in reserves
Net worth: Equal to or greater than loan amount
Ineligible Properties: Seniors housing, student housing (> 50% concentration), military housing ( > 25% concentration), Targeted Affordable Housing
$5 million to $50 million
Eligible Properties: Apartment properties with 5+ units, specifically-built student
housing, seniors housing, cooperative housing, Section 8 HAP
Terms: 5, 7, 10, year terms
Amortization: up to 30 years
Liability: - Non-recourse except for carve outs (#FR)
$10 million and up
Eligible properties: - Partially leased, newly constructed, or recently renovated multifamily housing properties, which are 100% complete
Occupancy: 75%
Terms: 5, 7, 10, and 12 year terms
Amortization: up to 30 years
Minimum DSCR: 1.25x
Liability: - Non-recourse with standard carve-outs (#FN)
Rate lock; - 30 - 180 days
Eligible Borrowers - Strong borrower net worth and liquidity
