Texas Apartment Loans

Texas apartment loans. Fortunately, there are many options to choose from. If you’re interested in buying — or even building — a commercial or multifamily property, you’ll need the right type of financing. Of course, there are variables here. In other words, the down payment amount, the interest rate, collateral requirements, and more will differ from one product to another. So, read on to learn more about Texas apartment loans.

Texas apartment loans are offered through federal government programs, private lenders, and big-name commercial lenders. So, you are limited to just one or a few. Instead, there are several ways to go to buy a multifamily property or to build a new commercial building. Here are the five most well-known apartment loans available in Texas and beyond:

1.  Fannie Mae Apartment Loans. This federal loan program allows investors to borrow as little as $750,000 with loan terms that can last up to 30 years. Fannie Mae’s commercial funding options include both conventional loans and especially loans, such as affordable loans, green financing, senior housing, and more. Usually, borrowers are required to put down 20 percent or more. As for interest rates, these tend to be competitive with commercial lenders, in order to attract more business and add to the overall portfolio.
2.  Freddie Mac Apartment Loans. This type of loan program ranges from $1 million up to $100 million for commercial property investments. There are several loan types available through Freddie Mac, including conventional loans, small balance loans, targeted affordable housing financing, senior housing, and more. Like the one above, loan terms can last as long as 30 years, and typically requires a down payment of 20 percent or more. Also, interest rates are quite competitive.
3.  Bank Balance Sheet Apartment Loans. Instead of going with a government-backed package, it’s also possible to get a commercial loan that is entirely in-house from the lender. Of course, this means the borrower will need to have a strong credit rating and commit at least 20 percent or more to a down payment. Interest rates will vary and loan terms, or the number of years, will also vary from lender to lender when it comes to balancing sheet loans.

Finally, there are two more options. One is an FHA apartment loan, which is for the purchase of existing properties. These loans generally start around $3 million and require about 20 percent down, with a loan term of up to 35 years. Another is an apartment construction loan. These are available from national lenders and rates, terms, and other requirements will differ from one to another.