Benefits of Offering Multifamily Agency Loans

By Paul Watson, First Vice President Commercial Banking at Bankers’ Bank

Multifamily agency loans offer numerous benefits for real estate investors and developers engaged in the multifamily housing sector. These loans, backed by government-sponsored entities like Fannie Mae and Freddie Mac, provide stability and financial advantages.

Multifamily agency loans often feature competitive interest rates, lower down payment requirements, and extended loan terms. This makes them an attractive option for financing multifamily properties, as borrowers can secure favorable rates and more time for repayment, ultimately improving cash flow and profitability.

These loans are known for their accessibility. They are available for a wide range of multifamily property types, from small apartment buildings to student housing to larger complexes, providing opportunities for investors.

Multifamily agency loans often come with non-recourse options, cash-out refinance options and life of loan interest only options and are assumable.  These features can be particularly valuable in the event of unforeseen challenges and market changes.

Multifamily agency loans provide investors and developers with cost-effective, flexible, and accessible financing solutions that support the growth and management of multifamily real estate portfolios.

Reach out to your Bankers’ Bank Commercial Banker to learn how you can become a Referring Bank for Agency Lending.