Does anyone know the best commercial property financing options?
Hey guys, I'm wondering if anyone knows about good financing options for commercial real estate or if there's a thread already dedicated to that that someone could reference to me. 

I'm looking at apartment buildings with 5+ units and am curious if there are financing options similar to, say, an FHA loan for a non-commercial property. From what I understand now, generally it's just min 20% down loans? Any help is greatly appreciated. Looking at properties around $300-500k obviously depending on financing options available.
[{"id": "gv6jz9t", "text": "From my limited understanding, it usually goes up to 25 or 30% down when you go to a commercial loan with higher interest. Some national banks do it but in most cases you're better off with local banks.", "replies": [], "depth": 1}, {"id": "gv6rylo", "text": "Fha or agency financing is also available for multifamily just so you know. The program works the same way, underwritten by a bank guaranteed by the agency.", "replies": [{"id": "gv72xzg", "text": "FHA only up to 4 units", "replies": [{"id": "gv73l3i", "text": "[nope](https://multifamily.fanniemae.com/about-multifamily/our-work)", "replies": [{"id": "gv74s3y", "text": "Most people associate FHA with the 3.5% down payment. The loan you linked to is most likely not 3.5%", "replies": [{"id": "gv7b82y", "text": "It is definitely not 3.5% down but agency funds a massive amount of (I want to say most) multifamily mortgages in the country. My experience is working with mortgages that do not fit into the agency bucket however.", "replies": [], "depth": 5}], "depth": 4}, {"id": "gv74xi4", "text": "Fannie Mae is different than FHA, which on the Multifamily side is more often referred to as HUD. HUD does, in fact, offer multifamily loans, with their most popular being the 223(f) refinance which features 35 year term/amortization, but that's not a fit for the loan size described by OP here.\n\nIn fact, Fannie Mae, Freddie Mac, and HUD would all be ineligible here based on the less than $1 Million loan size.", "replies": [{"id": "gv7bbkd", "text": "Thats accurate, I mixed up the two words that start with F.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gv6siz8", "text": "Fha and owner occupant financing is typically only reserved for 1-4 family houses. Or certain mixed use properties if the residential sqft is greater than 50% of the total sqft. I believe 20% is hard to come across by now. It\u2019s usually minimum 25%, although it may depend on the Loan amount.", "replies": [], "depth": 1}, {"id": "gv6wzrj", "text": "Probably won\u2019t cover the whole property, but C-PACE can help fill a gap in your capital stack. Lends for all energy and water related costs. 20 - 30 years, fixed, non-recourse money in the low to mid 5s.", "replies": [], "depth": 1}, {"id": "gv71cqk", "text": "For $1M+ loans Agency financing will be very competitive for experienced borrowers - difficult to qualify without experience.", "replies": [], "depth": 1}, {"id": "gv75fki", "text": "We arrange financing for a lot of properties in this size range. Here are a few things to know:\n\n1. Minimum 25% down, PLUS fees and closing costs. Most typically these fees are not rolled into the loan amount.\n2. Expect 25 year AMORTIZATION. That means you're paying loan interest/principal as if it takes 25 years to pay off.\n3. However, the LOAN TERM will be 5, 7, or 10 years in most cases. You owe the balance of the loan at that time (\"Balloon Payment\"), though you typically refinance or sell at that point.\n4. There will be Prepayment Penalties if you get out early. They vary and they are negotiable.\n5. Rates for regional bank/credit union loans are currently anywhere from the low 3's to the low 5's.\n6. Underwriting is based on a) property income, b) your wherewithal in operating the property, and c) your finances. In that order! But any of them can be the limiting factor.", "replies": [{"id": "gvbim8x", "text": "Low 3s% sounds too good to be true for IORE, but guess it depends on your location and relationship with that lender", "replies": [{"id": "gvbj43j", "text": "Relationship with the right lenders + the ability to sell the deal and negotiate. If you lack either, you either settle for bad financing, or you team up with an expert Capital Advisor.", "replies": [{"id": "gvbl3e7", "text": "If he already has a profitable relationship for the lender perhaps. But with cost of funds AND IORE, you definitely won't get that with larger institutions. \n\nCan only skin a cat so much.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gwlwd5u", "text": "Yes, usually its 20% to 30% down, but i know of a lender that does commercial financing from $400k to $5m and they can help with down payment &amp; closing cost as well.. ....  if you you got deal you working on....message directly for info", "replies": [], "depth": 1}]