Financing for apartment buildings usually require an investor to provide documented income. Whether refinancing or buying a commercial property with 5 or more units, an underwriter generally wants to review verified sources of income. However, limited income programs are available for investors with money from undocumented sources and for investors with tenants who primarily pay with cash.
Flexible Financing Terms for Commercial Loans
Access to capital prevents many investors from obtaining money to finance new construction projects or revitalization projects. Unit Financing Company provides flexible financing programs for commercial mortgage loans. Reduced documentation helps investors secure enough money to move forward with their construction plans.
Mortgage Loans to Fix or Flip Commercial Properties
Local banks frequently have too many requirements for investors to borrow money. An investor who has a reasonable plan, decent credit and some equity in real property might be able to obtain access to quick capital for commercial projects. Knowledgeable mortgage professionals generally have access to a variety of financial resources to acquire the money that an investor needs to rehab a commercial property.
Short-term financing is available to qualified investors who aim to quickly buy and sell an apartment building or a multi-unit property.
Appraisals for 5-Unit Apartment Building
Commercial banks and financial institutions will require an appraisal prior to funding a loan for an apartment with 5 or more units. As with most types of real estate loans, a lender needs to know the current market value of an apartment that it’s considering for commercial financing. For rehab loans and for construction loans, lenders will seek information from the appraiser to examine the after-repair-value for a property that’s being considered for financing.
While most commercial mortgage lenders will order the appraisal for an apartment building or for a multi-unit property, the borrower is responsible for the cost of the appraisal. Most savvy borrowers understand that the appraisal is a major part of the loan process. The appraisal is a key component of doing business. It’s comparable to a used car buyer’s desire for an auto inspection. Lenders want to know the underlying value and potential issues that might impact their financing decisions for a 5-unit apartment or for other types of commercial properties.
Bank Statements for Commercial Mortgage Loans
Investors may be required to provide copies of recent personal bank statements or business bank statements for several months. While bank statement requirements for mortgage loans will vary among lenders, borrowers who present solid rent rolls can expect to obtain favorable financing terms for a 5-unit apartment building. However, a borrower who has limited proof of rental income might qualify for attractive financing with a sufficient amount of reserves or real estate equity.
Commercial Mortgage Loans Without Bank Statements
Real estate investors should understand that mortgage lenders want to participate in investment opportunities that are financially sound. However, programs are available for borrowers seeking a commercial mortgage loan without bank statements. Generally, a borrower will need to have other compensating factors, such as an apartment building with substantial equity or an above-average credit score.
Stated Income Loans to Finance Apartments
Commercial mortgage loans with stated income guidelines exist for borrowers who need alternative lending solutions. Stated income loans to finance apartment units with five or more tenants are ideal for borrowers who do not want to supply recent tax returns, pay stubs or bank statements.
Unit Financing provides borrowers with access to stated income loans for long-term mortgage commitments, as well as the access to short-term mortgage loan programs.
When banks say no, Unit Financing will explore alternative lending options to help borrowers obtain money for apartment buildings or for other types of commercial real estate. Contact Unit Financing to get more information about 5-unit apartment building loans.
Need money now? Get in touch today! Contact Us