Multifamily Construction Loans

Multifamily construction financing is as competitive as it’s ever been and FBF is always offering the most competitive fixed rate, fully amortized, high-leverage and non-recourse financing.  Construction loans in California are in demand more than they’ve ever been due to the housing shortage we are facing. In fact, the state needs to build at least 180,000 new homes a year to keep up with demand, according to a report by the LA Times. Right now, we’re only building around 80,000.

Types of Construction Loans

Multifamily investors typically opt for one of a few different loans when they need to finance the construction phase of their project.

These include:

• Construction-to-Permanent Loan – like a conventional loan, a construction-to-permanent loan lets the borrower lock in the interest rate at the loan’s closing. You can then convert this loan into a permanent mortgage (also known as a conventional loan) once construction is complete. This is an ideal option for borrowers who don’t want to pay off a multifamily construction loan soon after the building phase is complete.
• Bridge Financing – these lending vehicles are typically used when investors need a short-term cushion during a transitionary period, such as the construction of a multifamily project. FBF can close in as little as 14 days, with loans starting at $500,000. We offer loans with no prepayment penalties, no bank statements and stated income. Only available in California and Arizona.
• Construction-Only Loan – a multifamily construction loan includes the costs associated with buying land, obtaining permits, creating plans, and funding labor and materials. These loans typically come with 12- to 24-month terms, and are usually paid off within a year or two of the project’s completion.

Don’t know which type of loan is right for you? FBF is happy to review your scenario and provide you with a range of options that meet your short- and long-term investment goals. Contact us today!

How to Choose a Multifamily Construction Lender

Not every lender is willing to provide financing for a multifamily construction project. Just as not every lender offers bridge and conventional financing. Fidelity Bancorp Funding offers both of these options because as multifamily investors ourselves, we know you can’t take a one-size-fits-all approach to building your real estate portfolio.

Find a lender who…

1. Makes the credit box fit YOU
2. Provides you with a wide range of options
3. Offers both bridge and conventional financing
4. Is reliable and understands that timing is everything
5. Has experience in multifamily construction loans

FBF offers the gamut to ensure there’s a solution for every investor and venture. We’re happy to discuss all your options with you, including the different types of loans to tackle the multifamily construction process, interest rates, terms and any other questions you may have.  If you are considering a construction project let FBF provide some initial feedback to help navigate the construction waters.