There are many options available for investing in real estate, but you may not know what kind of real estate investment is best for you with all the choices. A growing number of savvy investors are pursuing multifamily real estate holdings over single-family property investments. While either choice can yield a return on investment, multifamily real estate tends to have a higher payoff. A multifamily loan is a funding option for purchasing a residential structure with four or more housing units. If you are thinking about investing in real estate, you may want to look into this loan option, as it could allow you to generate passive income and build your own personal wealth. Lenders may vary on what constitutes a multifamily home, as some consider properties with five or more units to be commercial real estate or a mixed-use property, which have their own investment benefits. Obtaining commercial financing is typically more challenging, and the loan may have shorter repayment terms and require a larger down payment than a residential loan. If you’re new to real estate investing, it can be challenging to decide where to start. Buying a multifamily property is a logical entry investment when making your first foray into real estate investing. That’s because a multifamily property is easier to understand, as you’ve likely rented an apartment or house at some point during your life. Another reason multifamily real estate is a good starter investment is because the rental structure is easy to understand, as leases can be month to month or yearly, and the associated paperwork is straightforward. You’ll start with a basic understanding of what a fully functioning multifamily property needs to have. Each rental unit must have a functioning bathroom, kitchen, bedrooms, and living space. Investors look at multifamily properties for a variety of reasons. Some of the advantages to these properties include: Contact Us for More Multifamily Property Loan Information As with any type of investment, disadvantages exist, such as: Similar to other loan options, multifamily funding isn’t one size fits all. You can choose from several multifamily investment opportunities, depending on whether you plan to live in one of the units or rent them all out. There are four main types of multifamily loans: conventional, government-backed, short-term, and portfolio. Understanding the differences between the loan types and what they’re designed for can help you make a more informed decision as you move forward with your investment. A conventional multifamily mortgage is similar to a traditional mortgage loan that a borrower would request to purchase a residence. The terms are essentially the same, typically with 15- or 30-year repayment terms and offered by traditional lending institutions and banks. They adhere to the Fannie Mae qualifications for mortgage loans and maximum amounts. You can qualify for the loan when purchasing a housing structure with two, three, or four individual housing units. The loan limit is one of the differentiators between a conventional multifamily loan and other multifamily loans. Limits vary based on regional housing prices. The borrower on this type of multifamily loan will typically have to pay 20% of the purchase price as a down payment. Similar to traditional mortgage loans, the interest rates fluctuate for conventional multifamily mortgages. In order to qualify, the applicant must be planning to purchase a multifamily property with between two and four units, have at least six to 12 months of cash in reserves, and have a high credit score. Freddie Mac and Fannie Mae sponsor the government-backed multifamily mortgage options, which are ideal for investors who plan to live in one of the units and rent the others. As the name suggests, the loan is backed by the U.S. government and meets the standards set forth by the Federal Housing Administration (FHA). You can choose from five different financing options, including loans for structures with between two and four units and five units or more. The minimum loan amount for a 5+ unit property is $1 million, and no maximum loan amount applies. One example of a government-backed multifamily mortgage is known as FHA 223(f), which is designed for apartment buildings and can finance up to 87% of the loan-to-value of a property. Loan limits for FHA loans vary based on regional home prices and the type of property in question. The borrower may be subject to private mortgage insurance, depending on the terms of the loan and the amount of the down payment available. Each mortgage-backed multifamily loan type has its own eligibility requirements. Hard money loans for multifamily properties fall under the short-term loan category. A hard money loan is a short-term, interest-only loan that is typically used to purchase and renovate a distressed property. If you are considering purchasing a multi-unit housing property to flip and resell it, a short-term multifamily loan may be the best option for you. Bridge loans also fall under this category and are designed to bridge the gap between a period when the borrower is waiting for long-term financing or selling a property. An investor who wants to season, increase the occupancy of, or renovate a multi-unit property may benefit from a short-term multifamily loan. The interest rates are higher than other types of multi-family loans, but the repayment terms are typically much shorter, falling between six and 36 months in most cases. An advantage of this loan type is a shorter funding timeline, as a short-term loan can fund in as few as 10 days. A portfolio loan is a less conventional option for obtaining funding for a multifamily property. The property you plan to purchase with this type of loan must have at least two units to qualify. The terms of a portfolio multifamily loan can fall between three years and 30 years. This type of loan is designed for investors who need more flexible terms or want to finance multiple properties at the same time. An investor could use a portfolio loan to finance up to 10 different properties. The minimum loan amount for a portfolio multifamily loan is $100,000, while the maximum varies by lender and depends on the number of units in the structure. A minimum of 3% of the property value is required as a down payment. Lenders that offer portfolio loans have more flexibility in underwriting guidelines, providing more options to investors who qualify. Most lenders who offer this option focus more on the property’s performance than the personal financial situation of the borrower. If you are thinking about investing in multi-unit real estate properties, a multifamily loan can help you achieve your goals and start earning passive income as you collect rent from your tenants. Titan Funding has financial professionals to help you, including lending experts who can help answer any questions you might have or provide you with additional details about what loan options are available to you, based on your unique situation. We specialize in providing total capital solutions for our clients, and our partnerships with many leading financial institutions allow us to help you achieve your investment goals. Contact us today.
What Is a Multifamily Loan?
What are the Pros of Investing in a Multifamily Property?
What Are the Cons of Investing in a Multifamily Property?
Types of Multifamily Financing
Conventional Multifamily Mortgage
Government-Backed Multifamily Mortgage
Short-Term Multifamily Loan
Portfolio Multifamily Loan
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Frequently Asked Questions - FAQ
TL;DR: Titan Funding offers multifamily loans for acquiring properties with four or more units. Financing options range from conventional mortgages and government‑backed programs to short‑term hard‑money loans and portfolio loans; each has its own down‑payment requirements, loan limits and repayment terms.
What is private money lending?
Private money lending refers to financing provided by individuals or non‑bank entities for real‑estate investments. These loans are asset‑based rather than credit‑based and usually have short terms with higher interest rates compared with traditional bank loans.
How do I qualify for a real‑estate investment loan through Titan Funding?
Titan Funding evaluates the property’s value and the loan‑to‑value ratio rather than focusing on credit scores. Maintaining an LTV around 60 % and providing a clear plan for the investment increases your chances of approval.
What documents are needed for hard‑money loans?
Documentation typically includes proof of property ownership or purchase contracts, appraisals, and, for construction loans, detailed plans and budgets. Because underwriting is asset‑based, credit documentation is less critical than in conventional lending.
How quickly can I get funded for a property in Florida?
Titan Funding’s underwriting process usually takes about 48 hours, and approved borrowers can receive funds within four days for hard‑money, rental or bridge loans. Some commercial bridge loans provide funding in as little as 10 days.
Does Titan Funding lend to foreign nationals?
Yes. Titan Funding offers hard‑money programs for non‑U.S. citizens seeking to buy or refinance property in South Florida, using asset‑based underwriting to bypass conventional loan barriers.
What types of loans does Titan Funding offer?
The company provides various short‑ and long‑term real‑estate loans, including hard‑money and bridge loans, residential and commercial bridge loans, multifamily financing, fix‑and‑flip loans, rental property loans, ground‑up construction loans, bridge‑to‑permanent loans and cash‑out refinance options.
How does LTV work in real‑estate loans?
Loan‑to‑value ratio is calculated by dividing the loan amount by the appraised value of the property. Lenders, including Titan Funding, set maximum LTV thresholds (often around 60 % for hard‑money loans) to manage risk.
Which states does Titan Funding serve?
Titan Funding primarily serves Florida but may authorize loans in other states on a case‑by‑case basis. Applicants can discuss their specific property and location with the company’s professionals.
How do I calculate return on investment (ROI) for fix‑and‑flip projects?
ROI is determined by subtracting total costs (purchase price, renovation expenses, loan interest and fees) from the final sale price, then dividing the result by total costs. Titan Funding’s guide on calculating fix‑and‑flip ROI emphasizes factoring in loan terms and interest to evaluate profitability.
What are the risks of hard‑money loans?
Hard‑money loans carry higher interest rates (often 10 %–15 %) and points compared with traditional financing. They are short term, so borrowers need a clear exit strategy and must account for appraisal and origination fees in their budgets.
What constitutes a multifamily loan?
A multifamily loan finances the purchase of a residential structure with four or more housing units. Some lenders classify properties with five or more units as commercial or mixed‑use, which may require different financing.
Why do investors consider multifamily properties?
Multifamily properties offer increased cash flow, potential tax breaks, simplified insurance for one property with many units and scalability compared with single‑family investments. Investors can build portfolios faster by purchasing one multi‑unit property instead of multiple single‑family homes.
What are the four main types of multifamily financing?
The main categories are conventional mortgages (15‑ or 30‑year terms through banks with 20 % down payments); government‑backed loans such as FHA 223(f) that can finance up to 87 % LTV for apartment buildings; short‑term hard‑money or bridge loans for renovating distressed properties with funding in as few as 10 days; and portfolio loans with terms between three and 30 years, minimum loans of $100 000 and down payments around 3 %.
What are the pros and cons of multifamily investing?
Pros include higher cash flow, tax benefits and scalability. Cons involve higher initial expenses, greater competition among investors and more intensive property management responsibilities.
How fast can short‑term multifamily loans fund?
Hard‑money loans and bridge loans for multifamily properties can fund in as few as 10 days, with terms typically between six and 36 months. These loans are often used to purchase, renovate or stabilize a property before refinancing into long‑term financing.
How does Titan Funding support multifamily investors?
Titan Funding’s financial professionals help investors compare loan options, assess eligibility and secure capital solutions. The company partners with leading financial institutions to provide comprehensive financing choices, from conventional mortgages to flexible portfolio loans.