Apartment Loan in

Detroit

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Apartment Loans in Detroit:

Since April of 2000 Caffrey & Company LLC has been helping real estate investor’s nationwide find the best loan product for commercial real estate investment properties. Call for great rates for an apartment loan in Detroit. Caffrey & Company LLC has a special focus in Detroit apartment loans.  The most attractive, non-recourse loans terms start at $1,000,000 for multifamily properties.  Therefore, if you are looking for low interest rates, a non-recourse loan up to 80% of value (Over $7 million leverage up to 85% is available) you are at the right place.  These specialized apartment loan products are available in all of the Detroit suburbs including Warren and Dearborn.

Is Detroit a good place for apartment building investments?  What do lenders think of the Detroit market for multifamily loans?  Below is a market update as of June of 2024:

It appears that Detroit’s real estate market is showing signs of improvement, with positive net absorption expected this year after a 24-month period of weak demand. The first quarter saw a significant absorption of 1,100 units, partially offsetting relinquishments reported in previous years. However, the influx of 2,300 rentals expected to come online this year may lead to a short-term increase in vacancies. Despite this supply pressure, Detroit is expected to remain one of the 15 least vacant major metros in the nation through 2024.

Various factors are contributing to the relatively strong local occupancy, including the widening gap between average mortgage rates and apartment rents, emphasizing the value of renting. The Class A vacancy rate decreased to 5.5 percent in the first quarter of 2024, while revitalization projects in the CBD and New Center are aimed at improving land use and creating walkable residential communities, potentially attracting younger professionals to the area.

However, slow job growth and minimal employment increase are projected for 2024, and supply additions are expected to lead to a 0.8 percent year-over-year expansion in inventory. Despite positive net absorption, a strong year for completions is anticipated to outweigh local demand, resulting in an increase in vacancy rates. As a result, the average effective rent is expected to decrease year-over-year for the first time in over a decade, albeit still remaining relatively high at $1,262 per month in 2024.

Multifamily Loan Underwriting:

Each loan product has unique underwriting requirements.  Above all, how the loan data is presented to the lenders can have a negative or positive impact on pricing and loan proceeds.  We offer this expert loan underwriting for an apartment building loans in Detroit.  Therefore, this will help to achieve the best pricing and loan terms for your apartment building or commercial real estate investment.

Free Loan Quote:

We encourage our clients to submit key property level data for a free loan underwriting review.  This initial loan underwriting normally takes less than one business day for us to respond with several apartment loan options for you to consider.  Here is a short list of property level data that would aid in providing a loan quote:

Required Underwriting information needed:

  • Last two years and Year-To-Date detailed Profit and Loss statements (in addition a trailing 12-month P&L is best if available) on the apartment complex.
  • Current Rent Roll
  • Brief narrative description of the property.
  • If available a few electronic photos. Or a copy of the real estate agent’s marketing package.
  • What is the purpose of the loan? Acquisition, Refinance, cash out, re-position the property (renovations).

Next we will need to understand your investment objectives.  How much do you wish to borrower on the apartment complex?  Is this a long-term investment or short-term investment?  In other words outline your apartment loan in Detroit loan request.

We understand the financing of an apartment complex is a very important component of your investment.  Therefore, we encourage our client to send us details on the property before finalizing the purchase and sale contract for an indication of the type of loan that might be available to a particular property.  We can review and provide some up-front loan options.

Fixed Rate Loan Terms are Available for Multifamily Properties:

Loan terms are available from 3-years up to 35-years (40-years for new construction on loans over $7 million).  The Apartment buildings can be Garden Style, High Rise, Age Restricted, Student Housing, Section 8 Tenants and subsidize properties.  There must be at least 5-units.  If you have several buildings all with five or more apartment units that you wish to place under one loan no problem, the buildings should be within 3 to 5-miles from the other properties for best loan terms.

How long will it take to close the Loan?

The closing process normally takes between 45 and 55 days to close an apartment building loan in Detroit.  Closing costs vary between loan products.  Before you reach for your checkbook we will provide a detailed estimate of the anticipated closing costs.   At this stage you will know the loan product, the loan terms, and the anticipated closing costs to allow you to make an informed decision before moving forward.

In conclusion you find details on several loan products by following these links: Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products.  Want more details and sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site:   Multifamily Loan Interest Rates.

Keep Caffrey & Company in mind when searching for a Michigan lender for apartment loans. Have a question please call:  Mike Caffrey (913) 402-7077 or email: [email protected]


On our web site you can read about specific loan products: www.caffreyloans.com/loan-products, offered by Freddie Mac, Fannie Mae, HUD/FHA, Commercial Mortgage Back Securities (CMBS) and other loan products. Want more details on sample interest rates for apartment check out Interest Rates for Apartment Loans also on our web site: www.caffreyloans.com/apartment-loans.

Have a question please contact
Mike Caffrey
Telephone: (913) 402-7077
[email protected]
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