Apartment Loan rates are approximately the following for FNMA
and FHA 223(f):
Ten year FNMA Large Apartment Loan 5.90% to 6.00%
Seven year FNMA Large Apartment Loan 5.60% - 5.70%
For loans with 9.5 and 6.5 yrs. yld main. 75% - 80% LTV - 1.25 Min DSC $3 Million or greater
Loans with shorter yld. main. have a higher rate. Loans with lower LTV and higher DSC have a lower rate.
FNMA small loans are running between 6.15% and 6.25% for ten years min. loan size $750,000 and 6 units min.
FHA 223(f) apartment loan rates are just below 5% for 35 years.
It may be more work but it can save you in the long run. Min loan size typically $3 Million.
DSC 1.25 Max LTV 83.3% Cash Out Limit 75% LTV
FHA 232 LEAN - FHA 232/223(f) rates just over 5% due to slightly higher MIP (mortgage insurance premium) Processing time still very long, equity requirement much higher than the past, New construction deals are having the most trouble getting approved. I get calls from many principals that would love to find an alternative construction loan for very good deals. In other words construction lenders call me.
In other news the long slow wind down or "enhanced interrogation" of FNMA and Freddie Mac was proposed by the White Papers. The private lenders ( Maybe countrywide-II) would get to run the show again. Good news for apartment owners since down payments would likely go up and prices for homes likely down.
