Apartments still finding financing
There has been one constant throughout the past few years of financial malaise and claims about lenders not making loans: Apartment owners can still find financing. And while this financing used to be limited to existing properties with proven track records, there is some buzz on the national scene that private lenders are looking at new construction again, though that will be market specific where demand justifies the supply.
The constant sources have been and still are Fannie Mae and Freddie Mac, the embattled government-sponsored enterprises known for their struggling residential mortgage portfolios—but whose apartment portfolios are performing well. HUD has also never left the lending field, though it sometimes seems that its progress has ground to a halt.
Recent conversations with local bankers show a renewed interest in apartment lending and even some willingness to look at new construction. But again, this is heavily dependent on demand, which at present seems met by an adequate supply, except in specific submarkets. With rates being as low as they are, this seems to be an excellent time to finance a purchase or refinance an existing apartment project.
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A cautious comeback