current commercial rates - Posted by mike

Posted by mike on September 06, 2005 at 20:16:11:

thanks for the info

current commercial rates - Posted by mike

Posted by mike on September 06, 2005 at 13:18:56:

I am in the planning process for a 4 plex apartment building to be built. What is a good rate right now for construction loans? What is a good 30 yr rate for financing a 4 plex apartment. Most lending institutions are calling 4 units commercial.

Any help would be great. I am just trying to pencil out the numbers to determine cash flow.


Re: current commercial rates - Posted by Brian (WA)

Posted by Brian (WA) on September 06, 2005 at 14:26:47:


Your scenario is a little more challenging than usual. 4 unit buildings normally fall under residential lending. But the majority of these lenders will not lend on a 4 unit construction. There are a couple of commercial lenders that will do construction loans for units. That might be why you are being told this is a commercial loan. You might want to check with local bank either residential or commercial specific to your area, sometimes they will lend on a construction loan for units.

America One Finance

Re: current commercial rates - Posted by wes

Posted by wes on September 06, 2005 at 13:34:16:

Not sure who you are talking to but most lenders do NOT consider 4 units as commercial.

5 or more is usually the number used for commercial vs residential.

Could be different in your state??? But the reason is that state agencies that regulate residential loans handles loans for properties with up to 4 units… 5 or more units are not regulated in most states…

Construction loans vary widely according to a number of variables.

You might get prime rate from your bank, or 12-15% from other sources.
As far as 30 year rates, that is hard to say with your brief question and lack of detail. If you can make the numbers work with 8% you should be OK because even if you cannot get that rate for 30 years, you should be able to do better than that by using a shorter period of time (for a fixed rate).