Austin apartment loans come in different forms and structures, from various sources. For instance, there are federally created, structured commercial loans, that are available through many well-known and established commercial lenders. Also, there are a number of smaller, private lenders that also offer loans for multifamily properties. Of course, these differ in terms and conditions. So read on to learn more about the different types of apartment loans in Austin and beyond.
Austin apartment loans are available for commercial property investors who want to buy existing multifamily properties or even build from the ground up. Let’s start with perhaps the best known of them all, which are Fannie Mae and Freddie Mac. Fannie Mae offers commercial-grade loans for as little as $750,000, up to several million. These loans generally require 20 percent down, but do come with very competitive interest rates and can range in term up to 30 years.
Meanwhile, Freddie Mac also offers commercial property loans that range from $1 million up to as much as $100 million. Similarly, this financing requires 20 percent down or more, though boasts competitive interest rates, and terms that can last for decades. Yet another option is something that is lesser-known, called bank balance sheet loans. As the name implies, this type of financing is done completely in house and placed on the lender’s balance sheet. Last but not least or FHA apartment loans, which can be as little as $3 million or more. These likewise require 20 percent or more down, with rates and terms varying by the lender.