National Apartment Loans

Not all apartment loans are the same. It is important to understand tiered pricing when it comes to seeking apartment financing. The tiered approach takes several indicators into consideration. Some of these indicators include the age of the property, condition and build of the property, market location, LTV of the loan request, what tenants make up the occupancy and rent rollover risk, liquidity and depth of experience for the borrower. This criteria directly impacts the interest rate, term, amortization and recourse of the apartment loan.

Borrowers should keep these factors in mind when they apply for an apartment loan. For some loans a good interest rate may be 6%. For others 6% could be a premium over the competition. For this reason it is important to know the value of your asset when seeking a new loan. Don’t be afraid to push back on a lender and ask questions in an effort to understand the reasons behind their pricing. If you disagree, seek a second opinion. Knowing what you have will help set the right expectations for the loan you are offered.

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