Apartment Loans & Multifamily Mortgages
CLD is an apartment mortgage lender offering a wide variety of financing options for apartment loans nationwide. Our firm originates multifamily mortgages for its parent company CLD Capital. We are known in the marketplace for our aggressive pricing, professionalism, and quick execution on apartment loans. Our firm has partnered with Fannie Mae, Freddie Mac, HUD, FHA, REITs, Conduit, banks, and select institutional investors to bring you a wide array of financial products. CLD is an apartment mortgage banker providing highly customized solutions to help meet the investment needs of its clients.
CLD's Lending Programs:
- Small apartment loans - Multifamily mortgages ($1-$5 Million)
- Mid-balance apartment loans - Multifamily mortgages ($5-$25 Million)
- Large apartment loans - Multifamily mortgages (No Maximum)
In addition to traditional multifamily mortgages CLD provides financing for:
Commercial Loan Direct as a correspondent of the Fannie Mae program offers fixed rate funding on apartment loans for multifamily properties. These loans are available nationwide and will be funded under the Fannie Mae Delegated Underwriting Services Program. Fannie Mae plays a critical role in the U.S. rental housing market. FNMA's original charter in 1938 provided authority to facilitate the construction and financing of economically sound apartment housing projects. In 1984, Fannie Mae created a business division dedicated to purchasing apartment loans. Since that time, Fannie Mae has continued to provide a consistent supply of funding to the multifamily market through all market cycles.
FHA operates under HUD, which is the largest mortgage insurer in the United States. HUD administers the FHA apartment loan programs offering long-term, non-recourse financing for multifamily, affordable multifamily and cooperatives, assisted living facilities, skilled nursing facilities, seniors housing, critical access hospitals and manufactured housing communities. As a correspondent for the FHA Multifamily Accelerated Processing ("MAP") program, Commercial Loan Direct provides access to the flexibility of the HUD FHA loan programs on an expedited basis.
As other capital sources have decreased considerably, borrowers are turning to agency lending for new originations and refinancing of their multifamily projects. The primary benefit of FHA is that it is a source of financing that is always available despite the volatility of the market. Commercial Loan Direct has prepared an overview of the U.S. Department of Housing and Urban Development's (HUD) FHA multifamily mortgage insurance programs to help familiarize FHA applicants with these apartment loan programs.
A portfolio or conventional apartment loan is a loan that is made by a bank or lender that does not get sold into the secondary market i.e. Fannie Mae and Freddie Mac nor it gets packaged in a loan pool and sold in capital markets. These multifamily loans are typically made by banks and some credit unions. Because they don’t sell the loan off to Freddie or Fannie, the lender can create its own lending guidelines making this product more flexible. These type of apartment loans usually allow cash out, offer a higher leverage point, and have less restrictions. One draw back is that the bank will usually require personal guarantees from the Principals owning 20% or more of the property and would usually ask for a depository relationship from the borrower.
The Commercial Mortgage Backed Securities (CMBS) market is one of the fastest growing segments of the commercial mortgage industry. Just as not all projects fit Fannie Mae or FHA financing guidelines for qualified multifamily and health care/seniors housing, so too, not all multifamily loans can be financed utilizing the same financing structure.
Multifamily real estate first mortgage debt is generally broken down into two basic categories: (1) apartment loans to be securitized ("CMBS loans") and (2) portfolio loans. Portfolio loans are originated by a lender and held on its balance sheet through maturity.
In a CMBS transaction, many single multifamily mortgage loans of varying size, property type and location are pooled and transferred to a trust. The trust issues a series of bonds that may vary in yield, duration and payment priority. Nationally recognized rating agencies then assign credit ratings to the various bond classes ranging from investment grade (AAA/Aaa through BBB-/Baa3) to below investment grade (BB+/Ba1 through B-/B3) and an unrated class which is subordinate to the lowest rated bond class.
Our unique approach to apartment loan origination gives us a competitive advantage over our competition. CLD is one of the top online apartment loan producers in the United States.