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Multifamily Term Lending
Investors aiming to acquire, refinance, or leverage the equity in commercial multifamily or mixed-use properties can rely on JK Creative Systems for their investment financing requirements. Typically associated with larger-scale investments, these properties present a distinct opportunity for substantial returns on investment. Our efficient, in-house process guarantees an exceptional investor experience and facilitates a prompt closing
Multifamily Term
Multifamily Term Program Details
Interest Rate:
Rates Starting at 8.49%
DSCR (Debt Service Coverage Ratio:
Minimum DSCR of 1.25
Property Type:
Eligible Mixed-Use and 5+ Unit Multifamily Property
Limitations:
No Special Use or Commercial Only Units
Credit Score (FICO):
Minimum FICO of 680
Max Loan to Value:
Up to 75% LTV
Loan Size:
Minimum Loan Amount $500,000
Loan Term:
30 Year Term Available
Frequently Asked Questions
1. What is a Multifamily term loan?
These loans fund the acquisition and refinance of multifamily (5+ Units) and mixed-use properties, with the goal of achieving a net positive cash flow.
2. What type of investment strategy can be utilized?
Investors frequently purchase these properties with the goal of generating positive monthly cash flow and ultimately selling them for a profit. In many cases, investors will acquire a commercial multifamily or mixed-use property and rehab the property with the goal of raising rents for the life of the property. Using this approach, the investors can appreciate the value of the building and sell when either the value of the property reaches its maximum or when maintenance costs become too high.
3. How long is the term on these loans?
Commercial term loans operate the same as our residential single and multifamily home loans these range from 5/1, 7/1, and 10/1 ARM's to a 30 Year Fixed Rate loan. In this program specifically, we can adjust the amortization schedule to the best fit any investor needs.
4. Is there a minimum loan amount?
For these properties and loan types in particular, there is a $500,000 minimum loan amount. If you are unsure if your property will qualify, we recommend to fill out out application, and one of out expert associates will reach out to you directly.
5. Can you lend as a second lien position for seller financing?
Unfortunately, for all of our loans we must be in the first and only lien position. With a seller holdback we cannot lend unless we pay off the seller holdback lien and then we can refinance into a new loan where we are the sole and only lien holder.