Apartment Loans                                                                          

Apartment Loans can be difficult to source for a potential buyer or for a current owner who is looking to refinance.  Loans from a single apartment building, or an entire apartment complex are available through Capital Funding of America.  In fact, apartment construction lending and financing are two of  our specialties.

The minimum requirements for a project to be considered for funding are:

• The property must be located in the United States or Canada

• The mortgage amount must be at least $5,000,000  USD (lesser amounts case-by-case)

• The mortgage must be for a primary lien position

• The loans must be a minimum of 80% LTV 

•  If there is a second mortgage, there may only be a 80% CLTV

Loan terms, loan to value, and rates will vary depending upon market conditions, appraisal,  credit worthiness of borrower, rent roll, etc.

The requirements for loan submission are as follows:    

Refinancing of Existing Facilities:

• The verification of the original paid in equity provided at the initial acquisition date--no matter how old.

• Income statement and budget reflecting a stabilized net operating profit with explanation as to how it was arrived.

• Define any rehabilitation, updating, or repairs that are going to be done with the refinancing.

• Outline any other liens, major liabilities, etc. that are going to be paid off with the refinance.

• Personal financial statements of all principals owning more than 5% of the organization.

• Two years tax returns for the organization and the principals owning more than 5% of the organization.

• Two years income statements and balance sheet for the property, plus trailing period financials.

• Resumes of all of the principals.

• The amount of the present debt for all mortgages, both first and second mortgage.

• Completed CFoA Loan Applications and Credit Authorizations.

• Current rent roll.

New Acquisitions:

• Brief executive summary detailing the basics of the acquisition.

• Pro Forma Income statement and budget reflecting a stabilized net operating profit with explanation as to how it was arrived.

• Define any rehabilitation, updating, or repairs that are going with the refinancing.

• Two years tax returns for the organization and the principals owning more than 5% of the organization.

• Two years income statements and balance sheet, plus trailing period financials.

• Personal financial statements on principals owning more than 5% of the organization.

• Resumes of the principals.

• Completed CFoA Loan Applications and Credit Authorizations.

• Current rent roll.

New Construction or Substantial Rehabilitation:

• Brief executive summary explaining use and income source from the property and background of the organization to be the proposed real estate.

• Two years tax returns for the organization and the principals owning more than 5% of the organization.

• Two years income statements and balance sheet, plus trailing period financials.

• Personal financial statements on principals owning more than 5% of the organization.

• Resumes of the principals.

• Pro Forma Net Operating Statement for three years.

• Simple recap of Construction Costs.

• Plans and Specifications for construction.

• Completed CFoA Loan Applications and Credit Authorizations.

• Most current rent roll if the loan is for acquisitions with substantial rehabilitation.

For more detail information on financing your apartment property, please call us  at 1-800-322-5985 to speak to one of our Client Services Agents, or use this link to our CONTACT US page.

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