Undoubtedly, when people invest in multifamily real estate, they can generate a lot of revenue. In fact, according to greystone.com, multifamily real estate offers investors a better chance to grow their net worth compared to single-family homes. Unfortunately, multifamily real estate isn’t cheap, meaning investors need multifamily loans. Investors can get multifamily loans from various places, but which ones suit them the most?
According to the narrator in the video, credit unions are among the best loan facilities for investors looking to buy multifamily real estate.
Why? Because, unlike banks, they don’t place pre-payment penalties on their loans. Also, the amortization of loans secured from credit unions goes from anywhere between 20 and 30 years.
Credit unions are perfect for investors looking for refinancing instead of paying an expensive yield maintenance pre-payment penalty. However, there is a downside to investors getting multifamily real estate loans from credit unions. For instance, credit unions don’t offer interest-only loans.
Investors can also get loans for multifamily real estate from the HUD (department of housing and development). The benefit of multifamily real estate loans from the HUD is that these loans have an LTV (loan-to-value) of roughly 85% and have a payment period of 35 years.
