Bank & credit union loans
Relationship lending, often with shorter terms and recourse.
Financing explained
The right loan is part of the right deal.
An overview of how investment real estate is financed: the main loan types, the terms that matter and how lenders evaluate a property.
Debt shapes returns
Two investors can buy the same building at the same price and have very different outcomes because of how they finance it. Rate, term, amortization, leverage and flexibility all matter.
Understanding the options helps you choose debt that supports the business plan instead of fighting it.
Common loan types
Agency loans
Fannie Mae and Freddie Mac programs for stabilized multifamily.
HUD/FHA loans
Long-term, fully amortizing programs such as HUD 223(f) for stabilized apartments.
Bridge loans
Short-term financing for transitional or value-add properties.
CMBS loans
Securitized loans for many commercial property types.
Refinancing
Replacing existing debt to lower costs or return capital.
Income and coverage
Lenders focus on net operating income and the debt service coverage ratio to size the loan.
Leverage
Loan-to-value limits how much of the property's value can be borrowed, and is based on an appraisal.
Sponsor strength
Experience, net worth, liquidity and track record of the owners influence terms and approval.
Frequently asked questions
What is a HUD 223(f) loan?
A U.S. Department of Housing and Urban Development program, insured by FHA, for refinancing or purchasing existing multifamily properties, known for long, fully amortizing terms.
What is the difference between recourse and non-recourse loans?
With recourse, the borrower can be personally liable beyond the property; non-recourse loans generally limit the lender to the property itself, subject to exceptions.
What is a bridge loan in real estate?
A short-term loan used while a property is being improved or stabilized, typically refinanced into long-term debt afterward.
What loan-to-value do lenders offer on investment property?
It varies by lender, program, property type and market conditions. Lenders also apply debt service coverage tests that can limit loan size.
Lenders and partners
We are always glad to build relationships with lenders and capital partners.
Brooklyn, New York