Rates have dropped so substantially that even many borrowers with prepayment penalties can refinance and still come out on top.
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Atlanta, GA (PRWEB) January 24, 2012
Current and prospective apartment owners have spoken and Commercial Loan Direct has answered. The online business division of CLD Capital, based out of Atlanta, GA, has been a leading provider of commercial loans and now, apartment loans with its new Fannie Mae and FHA Programs. The company said it created these programs in response to an overwhelming amount of requests for apartment refinancing from borrowers with high interest loans and prospective purchasers wanting to take advantage of the strong rental market and declining commercial rates. Executive Vice President Fernando Martin, who spearheaded the initiative, believes that borrowers can create significant value by taking advantage of these government programs: "Agency-based commercial lending provides borrowers with multi-family properties some of the best opportunities in the current marketplace. Rates have dropped so substantially that even many borrowers with prepayment penalties can refinance and still come out on top."
Fannie Mae Apartment Loans. Commercial Loan Direct is now offering fixed rate apartment loans nationwide under Fannie Mae's Delegated Underwriting Services Program, available with terms and amortizations up to 30 years and closing dates in 30-45 days. Because of the decline in treasury rates, Commercial Loan Direct says that it can now offer loans with fixed rates of 3.5% to 4.3% at 80% LTV and variable rates of 3.19%. "This is by far our most popular product," says Mr. Martin, "because it offers the borrower flexible terms and a quick execution."
FHA Apartment Loans. The primary benefit of FHA products, offered under Commercial Loan Direct's other program, is that FHA is a source of financing that is always available despite the volatility of the market and offers some of the lowest rates right now, says the company's executives. Despite an extended execution period (6 months), the wait pays off with longer terms (up to 40 years) and low rates (only about 3.31%). As an additional service, Commercial Loan Direct offers solutions to overcome FHA's processing time with bridge lending available through the company's other programs.