LOAN INFORMATION


 

 

 

FAQs

Find the answers you need to make informed decisions regarding your financing needs. If you need additional information about the various lending options available from Apartment Bank, please .

HOW MUCH CAN I BORROW FROM APARTMENT BANK?

We finance multifamily and small business commercial properties ranging from $300,000 to $20,000,000.



DO YOU PROVIDE LENDING SERVICES THROUGHOUT THE CONTINENTAL USA?

As a nationwide bank, Apartment Bank makes multifamily and commercial real estate loans to properties in all major metropolitan areas. As with most guidelines, exceptions may be made for unique situations with favorable lending strengths.



HOW LONG WILL IT TAKE FOR MY LOAN TO CLOSE?

Apartment Bank loans typically close in 30 to 60 days. However, several factors can affect the amount of time it takes for your loan to close. One major influence is your property appraisal. Typically, buildings in more suburban areas will be much easier to obtain an appraisal for than buildings located in more rural areas. You can also speed up the process by returning your documents in a timely manner.



WHAT CRITERIA WILL I NEED TO MEET IN ORDER TO BE ELIGIBLE FOR A LOAN?

Apartment Bank looks at each applicant as an individual. Each of these criteria will be weighed against each other to provide you with the best financing available to you.



Credit Score: Your credit score will play an important role in determining the rates and terms that are available to you.



Building type: We can finance a wide array of building types including , student housing, senior housing, , , and mobile home parks.



Down payment: For new purchases, you will need to provide us with proof of funds for the down payment. We will also require a copy of your most recent bank statement, as well as a copy of your purchase agreement.



Appraisal: The appraisal is the largest factor in determining if the property can support the loan amount you are requesting. We will order an appraisal which will assess the actual value of the property.



WHAT TERMS AND AMORTIZATION DOES APARTMENT BANK OFFER?

We offer 3-, 5-, 7-, and 10-year hybrid loans. If you are looking for something specific, please reach out to our loan specialists so we can compose a unique lending opportunity to meet your needs.



WHAT LOAN PRODUCTS DOES APARTMENT BANK OFFER?

We offer loans for multifamily, small balance commercial, mixed use properties with both residential and commercial elements, and specialty properties.



WHAT ARE YOUR ORIGINATION COSTS AND APPLICATION FEES?

These vary on a case-by-case basis. Please contact us for a quote.*

*Any unused portion of the application deposit will be refunded to the borrower at the time of closing.



DO YOU HAVE A PREPAYMENT PENALTY?

Apartment Bank features step-down prepayment penalties during the fixed rate portion of the loan.



WHAT TYPE OF ENTITIES CAN APPLY FOR LOANS WITH APARTMENT BANK?

We accept most entity types including:

  • Individuals
  • Trusts
  • Limited liability companies
  • Non-resident aliens
  • Limited partnerships
  • Corporations


DOES APARTMENT BANK LEND TO FOREIGN NATIONALS?

Yes, we can lend to foreign nationals as long as the property is located in one of our main lending markets and passes our standard BSA review. Please note that the guideline for a foreign national loan is a 50% Loan to Value ratio.



DOES APARTMENT BANK MAKE LOANS TO CHURCHES, NON-PROFITS, OR BROKEN CONDOS?

No, we do not make loans to churches, non-profits or broken condos.



WHAT ARE THE SEASONING REQUIREMENTS?

If the property was purchased in the last 24 months, 20% cash equity in property is required. The value of the property is determined by factoring in the cost of property with the cost of improvements.



WHO DO I CONTACT REGARDING LOAN SERVICING AFTER MY LOAN IS FUNDED?

We release third-party reports requested by the borrower, such as the appraisal, once the loan has funded.



WHAT IS THE CASH OUT LIMIT ON REFINANCE/CASH-OUT LOANS?

The cash out limit is 70% LTV for Tier I & Tier II loans, and 60% LTV for Tier III loans. For 2-4 unit properties, the cash out limit is 60% LTV for Tier I & Tier II loans.



WHAT IS THE IDEAL DEBT-SERVICE COVERAGE RATIO TO OBTAIN A LOAN FROM APARTMENT BANK?

  • 6 month Libor ARM: 1.20
  • 3, 5, 7 & 10 Fixed Hybrid: 1.25
  • Non-Major MSA: 1.35


IS THERE ANY FLEXIBILITY ON THE GUIDELINES SPECIFIED IF THERE ARE COMPENSATING FACTORS?

Apartment Bank provides a portfolio of flexible products. We look at each lending scenario individually and take a specialized approach towards each loan. Call us today to see if you qualify for a loan from Apartment Bank: 1-800-656-5626. We can also be reached by email at .



LET'S START THE CONVERSATION

We want to learn more about your lending needs. Call us directly at 800-656-5626 or fill out our form and one of our loan specialists will reach out to you.

GET A QUOTE
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