Dallas apartment loans are available in a number of products, through various lenders. Some of these financing products are government-backed, while others are totally handled by the private lending sector. commercial property investors, whether wanting to buy an existing multifamily unit or build a completely new one, have several choices available to them. Read on to learn more about apartment loans available in the Dallas metro area and beyond.
Dallas apartment loans come in various forms. These are ideal financing options for property investors that want to either buy and hold, or purchase, improve, and eventually flip. Two of the most well-known loan packages, from Fannie Mae and Freddie Mac. The former government agency offers loans starting at $750,000, up to several million. These loans generally require 20 percent down but do offer competitive interest rates and lengthy loan terms. Meanwhile, the ladder government agency offers commercial level loans that range from $1 million to $100 million. These loans also usually require a down payment of 20 percent or more, but do offer attractive interest rates. Both Fannie Mae and Freddie Mac financing options have loan terms that can last from one to about three decades.
There are also two other types of commercial financing. One is what’s referred to as a bank balance sheet loan, meaning the bank makes the loan entirely on its own and keeps it completely in house. Bank balance sheet loans will vary in interest rate, term, and down payment from lender to lender. Meanwhile, FHA also offers commercial loans, that typically start at $3 million, with a 20 percent down payment requirement.