"Micro" Multifamily Loans

Understand the smaller loans of the industry and their purpose.

We’ve come to believe that the most underserved financial market in the United States is for what some would consider “micro” commercial property loans and apartment loans. Although $500,000 is nothing to scoff at, loans under $1 million for multifamily and other commercial real estate are overlooked because it costs a lender the same amount of money to originate a $500,000 loan as a $20 million loan. Additionally, commercial loan originators are often incentivized by volume and therefore have very little motivation to pursue loans under $1 million, as it may unnecessarily double, triple, or quadruple their workload (it takes x5 loans for $500,000 to reach $1 million). 

Even so, it would be foolish to think that the need for smaller balanced loans didn’t exist, or shouldn’t be given ample attention. As such, we like to make it a point to remind people of their options when looking to finance smaller loan amounts for multifamily properties. Typically, the smaller loans have terms that look something like this:

Loan Sizes Between $100,000 – $1 Million Eligibility and Program Highlights:

• Credit scores from 580 and up

• LTVs up to 80%

• Terms: Up to 10 years or more fixed

• Amortizations: up to 30 years with interest-only options

• Non-recourse for multifamily loans over $750K

• Low-documentation programs available

• Multifamily loans over $750k up to 30 years fixed

What Should You Expect When Applying for a Small Balance Commercial or Multifamily Loan?

• 30- to 45-Day Loan Closings

• Certainty of Execution 

• Aggressive Terms

• White-Glove Customer Service

• Multiple Loan Options