Multifamily FHA loans can be obtained by national lenders such as Berkshire. Do a search for FHA 223(f) & lenders and you should get some of the lender who do these loans.
Soft seller secong merely means that the seller held second mortgage has a very weak lien position compared to the first mortgage. Language for these seconds can vary according to the state you are in, but essentially the seller has little recourse upon default of either of the first or second mortgages.
GNMA is much like FNMA (Fannie Mae), or Freddie Mac. The last time I checked, the FHA loans indexed their rates off of the GNMA index. You can also do a search for GNMA to get more info and determine what the current rates are.
The rates on these FHA loans will generally be 50-75 bps higher than a CMBS, life, pension or Wall Street conduit rate as the LTV is higher and mortgage insurance is required at 50 bps per year.
If the seller is not willing to carry a second, then your best option would be a first with mezz financing as Don had suggested.
Does any one know of a lender who would do a deal on $2,825,000 multifamily apartment complex with 85% first mortgage at competitive interest rates (5-6%), 10% second mortgage at little higher interest rate and 5% downpayment from buyers?
You may also want to consider an FHA 223(f) loan.
Allows first mortgage of lesser of loan amount at 1.1765 DSC, 85% LTV (appraised value), 85% of total purchase price + transaction costs.
Soft seller second to a maximum of 7.5%
max. amort. 35 years, GNMA rates with ability to buy down rate, mortgage insurance required, nonrecourse to borrower.
I have one that will do up to 80% to 85% on the first and then mezzanine the second for a total of 90%. The first will be a conduit loan up to a 10yr term with 25 or 30yr am non recourse
Thanks Cam for the information. Where can we find FHA 223 f loan? And what is soft seller second? Also what is GNMA? Pardon my lack of knowledge on this terms.