A multifamily home is costly, so investors will need multifamily loans. Multifamily loans can be obtained from various places However, which of them will suit the best?
The video’s narration narrator claims credit unions have an array of loan options that are attractive for property owners who have multiple families. Why? Credit unions don’t have prepayment penalties unlike banks. The amortization time for loans made through credit unions is ranging from 20 to 30 years.
Investors looking to refinance rather then pay a large yield maintenance penalty will be better provided from credit unions. Credit unions don’t offer multi-family loans for real estate. However, this can have some drawbacks. They, for instance, do not provide interest-only loans.
The HUD (department for housing and development) is able to provide loans to investors that are looking to purchase multi-family property. The benefit of multifamily real estate loans provided by HUD is that these loans are backed by an LTV (loan-to-value) that is approximately 85 percent. They also have a payment period of 35 years. ridtfla1et.